There are no amendments to section 155.
SECTION 155.
Question proposed: "That section 155 stand part of the Bill."
Chairman
I note from the information paper that section 155 makes two amendments to section 12 (a) of the VAT Act in relation to farmers' flat rate addition.
Chairman
We had no amendments to section 155.
Am I not in order in debating the section?
Chairman
Yes.
I would like to ask the Minister whether these new arrangements for flat rate farmers selling outside the country will encourage agricultural exports or will there be a negative effect?
It should be positive. It is of benefit to the farmers and it should assist them.
In what way? Have you any example?
I will read the section. Under these arrangements, payment of a flat rate addition will be made by a trader registered for VAT in another member state to an Irish unregistered farmer. This trader will then be entitled to reclaim the flat rate addition paid to the farmer in respect of the supply. This extends the flat rate system to purchasers by traders registered for VAT in other member states. An Irish registered trader reclaims the flat rate addition to his normal VAT returns. The trader registered for VAT in another member state will reclaim the flat rate addition by direct application to the Revenue Commissioners. That will apply from 1 January. The second amendment to section 12 (a) of the VAT Act applies the new EC VAT arrangements concerning the flat rate compensation scheme for farmers. It provides that an unregistered farmer will be in a position to obtain a flat rate compensation in respect of supplies of goods or services to persons registering for VAT in another member state. An unregistered farmer who sells livestock to a UK livestock dealer will be entitled to receive a flat rate addition from the dealer. The UK dealer will, in turn, be entitled to recover the flat rate addition paid to the farmer by direct application to the Revenue Commissioners. Existing arrangements for the operation of the flat rate addition for internal supplies will remain unchanged.
I am pleased to hear that. I know that the export livestock trade is very minimum, because the beef sector has improved. It certainly will be a help to the livestock farmers exporting from the country. I am pleased to see that.
Question put and agreed.