Donnchadh Ó Laoghaire (Cork South-Central, Sinn Fein)
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331. To ask the Minister for Finance the value of the overcompensation provided as a result of the inclusion of poultry broiler sector within the VAT flat-rate addition scheme; and if he will make a statement on the matter. [37360/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy will be aware the farmers-flat rate scheme (FFR) is designed to reduce the administrative burden on farmers and allows them to remain outside the normal VAT system, thereby avoiding the obligations of registration and returns. It allows farmers to remain unregistered for VAT purposes and to be compensated, on an overall basis, for the VAT charged to them on their purchases of goods and services.

Following a review of detailed examination of the poultry sector in 2017 Revenue presented a report to the Department of Finance in 2019 which estimated that the overcompensation of all flat-rate farmers involved in chicken production amounted to approximately €7 million in 2017.

Revenue considers that the yearly overcompensation is approximate to the level identified in 2017 and believe that this continued since the review was carried out.