asked the Minister for Finance the total amount of VAT collected from farmers in 1988.
Written Answers. - Farm VAT Yield.
56.
Since most food is zero-rated, unregistered farmers are not required to account for VAT. They are, however, like most businesses, able to recover VAT incurred on their purchases and on expenditure on building and land improvement. Revenue statistics indicate that the total amount of compensation paid to them, through the flat rate system and through direct repayment by the Revenue Commissioners, was of the order of IR£60 million in 1988.
Some farmers, generally those with above average VAT inputs, opt to register in the normal way. These farmers accounted for IR£4.5 million VAT in 1988 in respect of sales of goods and services. However, as they deducted IR£12.5 million in respect of VAT incurred on purchases, the net position was that they were repaid IR£8.0 million by the Revenue Commissioners in 1988.