Written Answers Nos. 296-315
296. Deputy Cian O'Callaghan asked the Minister for Transport if he will review the toll increases that are due to be implemented in July 2024; if he will postpone these increases given the recent toll increases that have already taken place; and if he will make a statement on the matter. [1775/24]
View answerAs Minister for Transport, I have responsibility for overall policy and funding in relation to the national roads programme. Under the Roads Acts 1993-2015, the operation and management of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned.
Therefore, matters relating to the day to day operations regarding national roads, including toll roads are within the remit of TII. More specifically, the statutory power to levy tolls, to make toll bye-laws and to enter into agreements with private investors are vested in TII under Part V of the Roads Act 1993 (as amended). Moreover, the contracts for the privately-operated toll schemes are commercial agreements between TII and the Public Private Partnership (PPP) concessionaires concerned.
Toll charges are reviewed annually based on the Consumer Price Index (CPI). This will take place towards the end of 2024 and as such, there are no changes to tolls due to be implemented in July 2024.
297. Deputy Paul Murphy asked the Minister for Transport if he is aware of the concerns in the community of Firhouse in relation to when the bus route 49 will be taken out of Firhouse Village Centre to be replaced by the BusConnects F1 route; if he will instruct his Department to review this concern and add the eight bus stops from the community college around Ballycullen Ave. and down to stop 4757 on Ballycullen Drive to the new route so that it services the community needs (details supplied). [1779/24]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. In both the policy and funding areas there have been significant developments since this Government came into office, with the publication of a new Sustainable Mobility Policy and its five-year action plan providing strong policy support to the continued expansion and enhancement of bus services. I am also delighted to say that this strong policy support has been backed up by increased levels of Exchequer funding, which is supporting the roll-out of initiatives such as BusConnects Dublin.
The National Transport Authority (NTA) has responsibility for the planning and development of public transport infrastructure, including BusConnects Dublin.
Noting the NTA's responsibility in the matter, I have referred the Deputy's questions to the NTA for a direct reply. Please contact my private office if you do not receive a reply within 10 days.
298. Deputy Cathal Crowe asked the Minister for Transport if he, in conjunction with the Road Safety Authority will reconsider the decision to only accept electronic payments for drivers licences (details supplied); and if he will make a statement on the matter. [1806/24]
View answerPayment at National Driver Licence Service (NDLS) centres can be made by credit or debit card, Google Pay/Apple Pay or Payzone vouchers. Payzone vouchers can be purchased from over 3,500 retail outlets in towns and villages nationwide. The NDLS also allows an accompanying person to make card payments for customers who do not have cards themselves.
In relation to driving licence or renewal applications by older people, driving licences are free for those over 70.
299. Deputy Violet-Anne Wynne asked the Minister for Transport his views on the development of a railway station at a location (details supplied); and if he will make a statement on the matter. [1849/24]
View answerAs Minister of Transport, I have responsibility for policy and overall funding of public transport. The operation, maintenance and renewal of the rail network and stations on the network including the former station referred to at Crusheen, Co Clare, is a matter for Iarnród Éireann in the first instance.
In view of Iarnród Éireann's responsibility in this matter, I have referred the Deputy's question to the company for direct reply. Please contact my private office if you do not receive a reply within 10 working days.
300. Deputy Violet-Anne Wynne asked the Minister for Transport if he will consider extending a proposed rail line (details supplied); and if he will make a statement on the matter. [1850/24]
View answerAs the Deputy may know, the All-Island Strategic Rail Review is being undertaken in co-operation with the Department for Infrastructure in Northern Ireland. The results of the review will inform the development of the railway sector on the Island of Ireland over the coming decades.
The Review is considering the future of the rail network with regard to the following ambitions: improving sustainable connectivity between the major cities including the potential for higher/high-speed, enhancing regional accessibility, supporting balanced regional development and rail connectivity to our international gateways. This also includes the role of rail freight.
Work on the Review is now at an advanced stage and a draft report was published for the purposes of Strategic Environmental Assessment (SEA) public consultation in July of last year. As is already included in the Limerick/Shannon Metropolitan Area Strategy, the draft Review recommends building a spur to Shannon airport, but does not recommend extending the spur to Moneypoint Port.
The public consultation phase of the SEA process concluded on 29th September and submissions are now under review by the Project Team and officials from both jurisdictions. Following the SEA process and finalisation of the report, it is expected that it will be submitted for the approval of the Minister for Transport and Government, as well as to the Minister for Infrastructure in Northern Ireland.
Should there continue to be an absence of Ministers in the NI Executive, approval will be considered taking into account the decision-making framework set out in the Northern Ireland (Executive Formation etc.) Act 2022 or relevant legislation in place at the time.
It is expected that the final Review will be published later this year.
301. Deputy Patrick Costello asked the Minister for Transport what action his Department is taking to ensure that all motorway stop off petrol stations are fitted out with both fast charge and type 2 EV charging points, recognising the fact that many EV users only have type 2 connections; and if he will introduce minimum standards to ensure that all stations are required to facilitate type 2 charging points. [1866/24]
View answerHaving an effective and reliable charging network is an essential part of enabling drivers to make the switch to electric vehicles and home charging is the primary charging method for most Irish EV owners as it’s convenient and cheaper for the consumer as well as assisting in the overall management of the national grid. Over 80% of charging is expected to happen at home.
However, there is also a need for a seamless public charging network that will provide for situations or instances where home charging is not possible, such as on-street and residential charging, destination charging and workplace charging.
I launched The National En-Route EV Charging Network Plan in September 2023. This is the first element of the National EV Charging Network Plan which, will cover all publicly accessible EV charging in the country.
The National En-Route EV Charging Network Plan and associated initiatives will drive the delivery of charging infrastructure on the National Road Network. The Plan sets out ambitious targets for the level and coverage needed for En-Route charging on our national roads network. We are already seeing significant increased capacity of EV charging on our national roads, and this plan provides additional reassurance and certainty for EV drivers and those thinking of making the switch to EVs that they will be able to find high powered, fast and convenient EV charge-points where and when they need them.
The Plan sets out a provision of EV charging that will be ahead of demand and meet European requirements for charging electric cars, LGVs and HGVs by 2025 and 2030. The implementation of this Plan through enhanced grid connections, funding interventions and enabling measures will remove barriers and accelerate the delivery of high-powered EV charging.
The European Alternative Fuel Infrastructure Regulation which has come into force and will apply from 13th of April 2024, requires that where an AC charge-point is installed, it must provide a Type 2 connector for interoperability purposes. Where a DC charge point is being provided, it must provide a combined charging system ‘Combo 2’. The vast majority of cars battery are limited to take 7kW or 11kW when charging at AC. Based on 7kWs, it would take up to 2.5 hours to build up 100kM range. The maximum AC charge provided is 43kW, which only a tiny percentage of EV cars can accommodate, would result in valuable spaces being occupied for over 30 minutes to achieve 100KM. Therefore it would not be the best use of limited charging spaces that that are intended to serve the motorway traffic and require the fastest charging capacity possible. The Government is fully committed to supporting a significant expansion and modernisation of the electric vehicle (EV) charging network over the coming years, which will include AC charging at destination locations and across local authority EV charging networks.
302. Deputy Pauline Tully asked the Minister for Transport further to a request from the N2/A5/Ten-T Cross Border Committee (details supplied), if he will meet with the committee to discuss the delivery of improvements and upgrades to the N2/A5/TEN-T route from Dublin to the northwest and serving the Border region and Northern Ireland. [1972/24]
View answerAs Minister for Transport, I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Once funding arrangements have been put in place with Transport Infrastructure Ireland (TII), under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the planning, design and construction of individual national roads is a matter for TII, in conjunction with the local authorities concerned. This is also subject to the Public Spending Code and the necessary statutory approvals. In this context, TII is best placed to advise on the current status of these projects.
Noting the above position, I have referred your question, on this occasion, to TII for a direct reply as to the current status of the schemes on this route within the state. The A5 Western Transport Corridor (A5WTC) is a matter for the authorities in Northern Ireland. Please advise my private office if you do not receive a reply within 10 working days.
In relation to the suggested meeting, diary requests can be sent to ministerdiary@transport.gov.ie and will be dealt with in line with all other meeting requests.
303. Deputy Violet-Anne Wynne asked the Minister for Transport if the decision to accept non-cash payments only to pay for driver's licences will be reconsidered; and if he will make a statement on the matter. [2044/24]
View answerPayment at National Driver Licence Service (NDLS) centres may be made by credit or debit card, Google Pay/Apple Pay or Payzone vouchers. Payzone vouchers can be purchased with cash from over 3,500 retail outlets in towns and villages nationwide.
304. Deputy Fergus O'Dowd asked the Minister for Transport to provide a full update on the funding requirements and allocations required to advance the N2 Ardee to Carrickmacross road project; and if he will make a statement on the matter. [2049/24]
View answerAs Minister for Transport, I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the planning, design and construction of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code and the necessary statutory approvals. In this context, TII is best placed to advise you.
In 2023, €600,000 was allocated for the N2 Ardee to Castleblayney scheme. This project is listed in the NDP and will continue to be considered for further funding over the lifetime of the current NDP. Allocations for national roads in 2024 are expected to be announced in the near future.
Noting the above position, I have referred your question to TII for a direct reply updating you as to the latest status of the project. Please advise my private office if you do not receive a reply within 10 working days.
305. Deputy Fergus O'Dowd asked the Minister for Transport to provide an update on TII roads funding for 2024; the reason for the delay in announcing the final allocations; when he expects the announcement to be made; and if he will make a statement on the matter. [2078/24]
View answerAs Minister for Transport, I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Once funding arrangements have been put in place with Transport Infrastructure Ireland (TII), under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the planning, design and construction of individual national roads is a matter for TII, in conjunction with the local authorities concerned. This is also subject to the Public Spending Code and the necessary statutory approvals.
The allocations for national roads in 2024 are currently being finalised and will be announced by TII in the near future.
306. Deputy David Stanton asked the Minister for Transport to outline the rationale behind the reduction in the home charger grant scheme which came into effect on 1 January 2024; and if he will make a statement on the matter. [2080/24]
View answerElectric vehicles (EVs) are the most prominent transport mitigation measure in the Climate Action Plan and Ireland has set an ambitious target of 945,000 EVs on our roads by 2030. This target is challenging but indicates the scale of the transformation that is needed across all sectors if Ireland is to achieve its climate targets in the coming years.
Demand for electric vehicles is rising year on year. As of end 2023, there are over 110,000 electric vehicles on Irish roads. This year we are also seeing the arrival of newer EV models on the Irish market that are lower in cost. Normalisation of E-charging technology is inevitable for both vehicles and infrastructure.
The Government's investment strategy for electric vehicles will therefore begin a rebalance towards supporting public charging infrastructure starting this year. This is the rationale behind the reduction in the grant available for home chargers.
It is important to emphasise that Government support for the transition to EVs remains a key action in meeting our climate targets. There is no change to the existing generous VRT relief which is available to a maximum of €5,000 to purchasers of electric vehicles up to the selling price of €40,000, with a reduced scale for vehicles up to the selling price of €50,000. In addition, EV drivers can avail of additional incentives including a low rate of motor tax, favourable BIK rates and a generous vehicle purchase grant, as well as the reduced grant amount for home charging. €102m was allocated in 2024 to ensure the continued transition to electric vehicles which includes funding for EV grants and EV charging infrastructure. This underpins the Government’s commitment to making electric vehicles accessible to all.
Current financial supports from ZEVI, and where applicable with support from the Department of Finance, for the transition to electric vehicles include:
• A purchase grant for battery electric vehicles (BEVs);
• A home charging grant of €300;
• Benefit-in-Kind tax relief for battery electric vehicles;
• Vehicle Registration Tax (VRT) relief of up to €5000 for BEVs;
• eSPSV grant scheme – a grant for taxi drivers to make the switch to an EV;
• ZEHDV grant scheme – a grant for HDVs to bridge the gap between a low emission vehicle and a fossil fuel vehicle; and
• Low rates of annual motor tax.
• Government is in 2024 moving funding from supporting private home charging to funding more charging on public infrastructure, and will begin delivery of public infrastructure on the motorway and national roads networks, destination charging in sports clubs and community charging facilities, and supporting Local Authorities with the development and delivery of Local EV charging networks.
• This is consistent with our Climate Action Plan targets and EU regulatory requirements whereby supports for fleet electrification are now rebalanced towards building out public charging infrastructure. This change also aligns with similar polices in European nations, where countries including Norway, Germany and France have begun to taper vehicle subsidies and shift government investment towards provision of charging infrastructure.
• Continued public charging infrastructure investment will incentivise the switch to electric vehicles as well as enabling the expansion of a fast and rapid electric vehicle charging network to stay ahead of demand.
307. Deputy Eoin Ó Broin asked the Minister for Finance the total expenditure on the help to buy scheme in each year since the scheme was launched, including expenditure to date in 2023; and the budget allocation for the scheme in 2024. [56290/23]
View answerI am advised by Revenue that the total costs for fully approved Help to Buy claims for the years 2017 to 2022, including retrospective cases for the period 19 July to 31 December 2016, are outlined in the ‘Cost of Tax Expenditures’ publication, which is available on the Revenue website at www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx.
However for ease of reference for the Deputy I have included the below table:
|
Year |
Cost €m |
|
2017 |
69.4 |
|
2018 |
73.5 |
|
2019 |
101.1 |
|
2020 |
120.4 |
|
2021 |
190.5 |
|
2022 |
181 |
The provisional cost of approved claims for 2023 is €185.6 million. This figure includes only cases that were fully approved during the year. A final cost for 2023 will be published in the ‘Cost of Tax Expenditures’ publication in Q3 2024.
To answer the Deputy’s question on the budget allocation for 2024, Help to Buy is a demand led scheme which is subject to a broad range of variables, including housing completion rates and prices. For the purposes of the Budget 2024 documentation, a figure of €181 million was estimated as the full year cost going forward.
308. Deputy Eoin Ó Broin asked the Minister for Finance the amount of electricity tax collected from business and non-businesses categories, respectively. [56363/23]
View answerI am advised by Revenue that the net declared liabilities as stated in the Electricity Tax returns for the previous five years for business and non-businesses categories are broken down in the table below. Actual receipts collected are different for some years due to overpayments and subsequent adjustments made in the following years. The overall totals for net declared liabilities and receipts collected are broadly comparable over an extended time period.
|
Year Liability Due |
Business €m |
Non-Business €m |
Total €m |
|
2023 |
3.94 |
0.29 |
4.23 |
|
2022 |
3.89 |
0.21 |
4.09 |
|
2021 |
3.80 |
0.26 |
4.06 |
|
2020 |
2.29 |
0.15 |
2.44 |
|
2019 |
2.43 |
0.13 |
2.56 |
309. Deputy Seán Canney asked the Minister for Finance if he will amend the rules regarding the imposition of the residential zoned land tax on land used for active farming; and if he will make a statement on the matter. [56438/23]
View answerThe Residential Zoned Land Tax (RZLT) was introduced in Finance Act 2021. It seeks to increase housing supply by encouraging the activation of development on lands which are suitably zoned and appropriately serviced. It aims to bring those lands which have benefitted from investment in services and are capable of being developed forward for housing.
The tax is an action contained in Housing for All, the Government’s plan for housing, to increase housing supply and is supported in the Programme for Government. The tax applies to land that is zoned suitable for residential development and serviced.
The tax measure is a key pillar of the Government’s response to address the urgent need to increase housing supply in suitable locations. However, it is important that affected landowners have sufficient opportunity to engage with the mapping process and that a fair and transparent process is applied when local authorities consider what land should be placed on the RZLT maps.
Therefore, as part of Budget 2024, it was decided to extend the liability date of the tax by one year, from February 2024 to February 2025. The policy rationale behind this deferral is to allow for the annual mapping cycle to complete and afford landowners another opportunity to raise issues for the consideration of the local authority regarding particular matters which would preclude housing being developed on the land, which may result in the land not meeting the criteria for inclusion as set out in section 653B of the TCA 1997.
The deferral will also provide a further opportunity to landowners whose land will appear on a draft revised final map to be published on 1 February 2024 to request the re-zoning of such land from the local authority in whose functional area the land is situated.
In relation to farmland, it is important to note that, to come within the scope of RZLT, farmland must be both zoned for residential use and serviced. Farmland that is zoned for residential use, but which is not currently serviced, is not within the scope of the tax and will only come within the scope of the tax should the land become serviced at some point in the future.
Agricultural land which is zoned solely or primarily for residential use meets the criteria set out within the legislation and therefore falls within the scope of the tax. Agricultural land that is zoned for a mixture of uses including residential is not in scope. These zonings are considered to reflect the housing need set out within the core strategy for the relevant local authority area and landowners within such zonings may fall within the scope of the tax, in the interests of ensuring an appropriate supply of housing on zoned lands.
Decisions on whether to amend zonings as a result of submissions or at any other time are a matter for the local authority, taking into account the need to ensure that housing supply targets across the county can be met.
Furthermore, it is worth noting that provision is made in the Planning and Development Act 2000 for elected members to seek a report from their Chief Executive on the matter of proposed re-zonings.
310. Deputy Alan Dillon asked the Minister for Finance the number of officers with assigned powers (details supplied) under section 62 of the Finance Act 1994, per county, in tabular form; and if he will make a statement on the matter. [56444/23]
View answer311. Deputy Alan Dillon asked the Minister for Finance the number of officers with assigned powers (details supplied) under section 62 of the Finance Act 2001, sections 134, 135, 136, 138, 139, 140 and 141, per county, in tabular form; and if he will make a statement on the matter. [56445/23]
View answer312. Deputy Alan Dillon asked the Minister for Finance the number of officers with assigned powers (details supplied) under regulation 7 of the European Communities (Intrastat) Regulations 1993, per county, in tabular form; and if he will make a statement on the matter. [56446/23]
View answerI propose to take Questions Nos. 310, 311 and 312 together.
It appears that the references in the Deputy’s questions to section 62 of Finance Act 1994 and section 62 of Finance Act 2001 are erroneous and that they should instead reference section 62 of Finance Act 1993.
Section 62 of Finance Act 1993 relates to questioning of vehicle owners, while sections 134 through 141 of Finance Act 2001 relate to the power to stop vehicles, to examine and search vehicles and to take samples, entry and search of premises and to take samples, questioning in respect of certain tobacco products, power of arrest and detention of persons, detention of goods and vehicles and seizure of goods and vehicles.
Revenue have provided the table below which outlines the number of Revenue officers authorised under Section 62 of Finance Act 1993 and Sections 134, 135, 136, 138, 139, 140 and 141 of Finance Act 2001. The table provides a breakdown by the county in which the office to which the officers are assigned is located however, the authorisations are national in remit.
It should also be noted that Regulation 7 of the European Communities (Intrastat) Regulations 1993 has been superseded by Article 6 of the European Communities (Intrastat) Regulations, 2011. As such, Revenue have provided further information in the table which outlines the number of Revenue officers authorised under Article 6 of the European Communities (Intrastat) Regulations, 2011 (Statutory Instrument No 610/2011).
Again, the table provides a breakdown by the county in which the office to which the officers are assigned is located although the authorisations are national in remit. The Article 6 authorisation is granted as part of the standard suite of authorisations covered by the Revenue Authorisation ID Card and gives authorisation for officers to enter premises for the purpose of inspecting records relating to goods to which the Intrastat system applies. Revenue has replaced all existing Regulation 7 authorisations with Article 6 authorisations.
|
County |
Section 62 + sections 134-141 authorisations |
Article 6 authorisations |
|
Clare |
53 |
52 |
|
Cork |
211 |
169 |
|
Donegal |
70 |
70 |
|
Dublin |
1,333 |
1,327 |
|
Galway |
96 |
95 |
|
Kerry |
44 |
44 |
|
Kildare |
14 |
14 |
|
Kilkenny |
50 |
50 |
|
Laois |
13 |
13 |
|
Limerick |
146 |
146 |
|
Louth |
84 |
83 |
|
Mayo |
57 |
57 |
|
Meath |
38 |
38 |
|
Monaghan |
14 |
14 |
|
Offaly |
3 |
3 |
|
Roscommon |
9 |
9 |
|
Sligo |
53 |
53 |
|
Tipperary |
61 |
61 |
|
Waterford |
59 |
59 |
|
Westmeath |
89 |
88 |
|
Wexford |
115 |
115 |
|
Total |
2,612 |
2,560 |
313. Deputy Michael Creed asked the Minister for Finance what consideration has been given by him to a more favourable VAT and customs regime for products deemed to be more environmentally friendly; and if he will make a statement on the matter. [56511/23]
View answerThe 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 of VAT. Currently, Ireland has two reduced rates of 13.5% and 9%. Member States can also apply a reduced rate lower than the 5% minimum and a zero-rate to certain categories in Annex III.
There is no provision in the VAT Directive to provide for separate treatment for goods deemed to be more environmentally friendly.
Custom duties are determined by the value, not the nature, of goods being imported into Ireland from a non-EU country (including the UK).Goods with an intrinsic value (the value of the goods alone excluding transport, insurance and handling charges) of €150 or less are not charged custom duties. Additional charges may apply to certain named goods (e.g. excise duties on alcohol and tobacco). These charges are also a matter of EU law.
314. Deputy Ged Nash asked the Minister for Finance the total amount in legal costs that have been recovered by the Office of the Chief State Solicitor following an award of costs in favour of a party represented by the office in court or tribunal proceedings in each of the five years up to and including 2022; how many sets of proceedings to which those recovered costs are referable in each of those years; and if he will make a statement on the matter. [56566/23]
View answerThe NTMA have advised me that since the end of 2018, the State Claims Agency (SCA) manages claims for legal costs on behalf of the Office of the Chief State Solicitor (OCSS). The SCA has recovered and subsequently transferred €505,367.61, arising from 4 orders, to the OCSS in the year 2021.
315. Deputy Danny Healy-Rae asked the Minister for Finance for an update on a matter (details supplied); and if he will make a statement on the matter. [56600/23]
View answer329. Deputy Colm Burke asked the Minister for Finance if his Department will engage with the Revenue Commissioners in respect of a different approach now being adopted by the Revenue Commissioners regarding the VAT 58 refund claims by non-VAT registered farmers (details supplied); and if he will make a statement on the matter. [56894/23]
View answer338. Deputy Danny Healy-Rae asked the Minister for Finance if he will provide an update on a matter (details supplied); and if he will make a statement on the matter. [57387/23]
View answer341. Deputy Mattie McGrath asked the Minister for Finance the reason for the change to the refund of VAT for unregistered farmers; if this change will be reversed immediately; and if he will make a statement on the matter. [1026/24]
View answer342. Deputy Emer Higgins asked the Minister for Finance to provide details of the amount of money claimed by the agricultural sector in VAT 58 reclaims annually for the past ten years; and if he will make a statement on the matter. [1051/24]
View answer366. Deputy Claire Kerrane asked the Minister for Finance if consideration has been given to addressing issues arising in relation to VAT refunds for farmers; if he has engaged with representatives from the agriculture sector on finding a solution; and if he will make a statement on the matter. [1621/24]
View answerI propose to take Questions Nos. 315, 329, 338, 341, 342 and 366 together.
The VAT treatment of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In accordance with the EU VAT Directive, farmers can elect whether or not to register for VAT in respect of their farming business, and each farmer’s decision on this matter affects how VAT incurred on their inputs (such as the purchase of farm equipment) is treated.
Farmers who elect to register for VAT are – like any VAT-registered business – obliged to account for VAT on their supplies and, equally, are entitled to claim a deduction for VAT incurred on inputs used by the business. Therefore, VAT-registered farmers are entitled to reclaim the VAT incurred on farm equipment, including, for example, milk bulk tanks, calf feeders, meal bins and milking parlour equipment about which one of the Deputies has asked. The claim is made through the farmer’s normal VAT return.
Alternatively, under VAT law, farmers can decide not to register for VAT, and to avail instead of the Flat-rate Farmers Scheme which applies to VAT-unregistered farmers. As is normal for VAT-unregistered businesses, unregistered farmers are not entitled to reclaim VAT incurred on the various individual inputs used in their farming business. However, uniquely for the farming sector, the Directive permits a special arrangement – known as the Flat-Rate Farmer’s Scheme – which compensates unregistered farmers for the overall VAT incurred by their sector. The Scheme is designed as an administrative simplification measure to enable unregistered farmers to be compensated on an overall basis for VAT on inputs, while remaining outside the VAT system, thereby avoiding the burdens associated with VAT registration and filing. The Scheme allows unregistered farmers to add and retain a percentage charge (known as the “flat-rate addition”) onto the amount they invoice VAT-registered businesses whom they supply with agricultural goods and services in the course of their farming business. Each year, the level of the flat-rate percentage is reviewed and, if needed, re-set under law, in order to ensure that the Scheme continues to allow appropriately for the unregistered farming sector to be fully compensated, on an overall basis, for the VAT it incurs.
Generally, businesses that are not registered for VAT are not permitted to reclaim any VAT they incur. However, in addition to the compensation for VAT-unregistered farmers provided by the Flat-rate Scheme, Irish VAT law also permits flat-rate farmers to reclaim VAT they incur on some particular business expenditure, as set out in the Value-Added Tax (Refund of Tax) (Flat-rate Farmers) Order 2012 (S.I. No. 201/2012). The Refund Order is permitted under EU law, subject to certain conditions, including that its scope is not extended. The Order allows unregistered farmers to claim refunds for VAT incurred on the following farming business expenditure:
the construction, extension, alteration or reconstruction of farm buildings or structures;
the fencing, draining or reclamation of farmland; and
the construction, erection or installation of qualifying equipment for the micro-generation of electricity for use in the farm business.
Expenditure incurred by flat-rate farmers on any other farming business inputs, such as farm equipment, does not come within the scope of the Refund Order. Farm equipment which is outside the scope of the Order would include milk bulk tanks, calf feeders, meal bins and milking parlour equipment about which one of the Deputies is asking. However, where the installation of farming equipment requires the alteration or reconstruction of a farm building or structure, the corresponding expenditure may be allowed in certain circumstances.
I understand from Revenue that claims by unregistered farmers for refunds under the Order are made on a self-assessment basis. Claimants should satisfy themselves that any claim complies with the Refund Order. As is normal for self-assessed taxes and schemes, claims received are risk-assessed for review by Revenue. Each reviewed claim is assessed on its own merits. Claims that do not comply with the order cannot qualify for a refund of the VAT. Where a VAT refund is refused by Revenue, a farmer can appeal the decision to the Tax Appeals Commission, which is an independent statutory body that hears and determines appeals against assessments and decisions of the Revenue Commissioners, including decisions to refuse claims under this Refund Order.
Revenue have confirmed that they have not changed their interpretation of the law on the Refund Order. In recent times, though, their risk-assessment of claims has identified ineligible claims for the refund of VAT on various types of farm equipment, which is outside the scope of the Refund Order. Revenue’s refusal of such ineligible claims has led to queries from the farming and the farm equipment sectors.
My Department and Revenue are engaging with the farming sector to explain the situation in relation to the law and the claims process. In December, they met the Irish Creamery Milk Suppliers Association (ICMSA) and are shortly due to meet the Irish Farmers Association (IFA). I trust that these meetings will assist in clarifying the matter and addressing the concerns of the sector. Revenue have also confirmed that updated guidance will be published shortly after engagement with the sector so that further information will be available on the Refund Order.
The following table sets out the amount of VAT refunded by Revenue to unregistered farmers under the Refund Order in each of the last 10 years:
|
Year |
No. of Claims |
VAT Refunds |
|
2023 |
35,896 |
€88m |
|
2022 |
35,948 |
€89.3m |
|
2021 |
36,243 |
€85.7m |
|
2020 |
37,176 |
€80m |
|
2019 |
35,517 |
€71.1m |
|
2018 |
21,947 |
€76.1m |
|
2017 |
20,537 |
€59.5m |
|
2016 |
23,055 |
€56.3m |
|
2015 |
21,151 |
€54.9m |
|
2014 |
21,227 |
€50.9m |
