Dinny McGinley
Question:10 Mr. McGinley asked the Minister for Finance the VAT regulations governing the purchase of fishing boats; if fishing vessels are exempt or if VAT refunds can be claimed for all newly purchased fishing boats.
Ceisteanna—Questions. Written Answers. - Fishing Boats VAT Regulations.
I should explain that, as a general rule, commercial fishermen have the option of registering for VAT. Where they do so, they are entitled to recover in full the VAT borne on their business inputs including fishing boats.
Freshwater fishermen are treated as farmers for VAT purposes. This means that unregistered freshwater fishermen are entitled to add the 2.5 per cent flat rate addition to the supplies they make to registered persons. The purpose of this arrangement is to compensate them, in a general way, for the VAT borne on their business inputs.
Where sea fishermen are concerned, zero rating applies to the supply, repair and maintenance of sea-fishing vessels of a gross tonnage of more than 15 tons as well as to fishing nets. VAT charged on the supply, repair and maintenance of sea fishing vessels of less than 15 tons is refundable where the purchase of the vessel in question has been assisted by a grant or loan from An Bord Iascaigh Mhara.
Provision also exists for the refund of VAT charged on the repair and maintenance of most ancillary equipment and on marine diesel used in the course of a commercial sea-fishing business, whether or not the vessel has been the subject of assistance from An Bord Iascaigh Mhara.