I am advised by Revenue that the VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, unless they fall within categories of goods and services specified in Annex III of the VAT Directive, in respect of which Member States may apply a lower rate from VAT. Within its rates structure, the EU VAT Directive also allows for historic VAT treatment to be maintained under certain conditions on certain goods and services not provided for in Annex III.
Currently Ireland has a standard VAT rate of 23% and two reduced rates of 13.5% and 9%. Ireland also holds a number of derogations, under which is it permitted to retain some historic VAT arrangements, under strict conditions.
On this basis, the zero rate of VAT applies to the supply of fertiliser including agricultural fertiliser, provided such fertiliser is supplied in units of not less than 10 kilos; otherwise, the standard rate of VAT applies. No carbon tax is applied on the sale or purchase of fertiliser.
I have no proposals to change the current VAT arrangements in this area at the moment.