I am advised by Revenue that, in accordance with the EU and Irish VAT law, fishers can decide whether or not they wish to register for VAT.
Many fishers do not elect to register for VAT and therefore they are not entitled to recover VAT incurred on their expenses. However, VAT unregistered fishers may be able to claim a repayment of VAT paid on the purchase or importation of marine diesel for use on a registered sea-fishing vessel, under the Value-Added Tax (Refund of Tax) (no. 16) Order,1983. The refund order does not provide for a refund of VAT incurred on petrol. Under the VAT Directive, with which Irish VAT legislation must comply, this refund order cannot be expanded.
The Deputy may wish to know that even if the taxpayer is registered for VAT and makes only taxable supplies, the VAT Consolidation Act provides that VAT cannot be reclaimed on petrol, otherwise than as stock-in-trade.