Vol. 559 No. 1
134 Dr. Upton asked the Minister for Finance if he will review the flat rate VAT refund to farmers to keep pace with falling farm output prices and VAT paid by farmers on inputs; and if he will make a statement on the matter. [25778/02]
The flat-rate scheme is a practical method of applying value-added tax to farming. It seeks to compensate unregistered farmers, on an overall basis, for the VAT charged to them on their purchases of goods and services i.e. farming inputs.
The flat rate is reviewed annually in accordance with EU law by reference to macro economic data, for the preceding three years, on agricultural production and agricultural inputs and the deductible VAT content of such inputs, and was reviewed in advance of budget 2003. An analysis of the data indicated that the rate should remain at 4.3 % in 2003.
