Dáil Éireann Debate, Thursday - 6 October 2022
419. Deputy Jackie Cahill asked the Minister for Agriculture, Food and the Marine if he accepts that forest management companies must pay VAT on mandated grants paid by the Forestry Service of his Department; and if he will make a statement on the matter. [49386/22]
Amharc ar fhreagraThe Deputy will be aware that the Forestry Division of my Department pays grants for the establishment of forests and for various support schemes under the afforestation programme. These grants are payable exclusive of VAT to the forest owner to cover the costs of the operations.
The forest owner will, normally, contract the operations to a forester or forestry company. My Department provides the facility for the forest owner to mandate the payment of the grant to that forester or forestry company. This is an optional facility provided on mutual agreement between the contracting parties, and has been an attractive and much used option.
The tax treatment of the grant will be that which is applicable to the forest owner, who is the actual recipient of the grant. The accountable person for VAT is the supplier of the service, in this case the forester or forestry company.
