Greater clarity sought from Revenue to allay uncertainty and confusion among farmers and milking machine dealerships

Essential that farmers continue to receive and avail of the supports required to upgrade and modernise their farming enterprises.

A delegation led by Eamonn McEnteggart – newly appointed Chairperson of the ICOS Dairy Committee and of Milk Quality Ireland Co-operative Society Ltd – met with senior officials from Revenue. 

The purpose of the meeting was to seek greater clarity from Revenue regarding their application of the flat rate refund order relating to dairy farm infrastructure projects and to explain to Revenue some of the scenarios that are happening out on the ground.

The delegation included members from the main dairy equipment manufacturers, milking machine technicians, ICOS and IFAC. The issues raised by the delegation included the treatment of automatic cluster removers, robotic scrapers and milking and dairy equipment in general, as well as conflicting requirements arising when submitting payment claims for grant aid under TAMS and VAT refunds.

Eamonn McEnteggart said “There still is a lot of uncertainty and confusion among farmers and milking machine dealerships regarding VAT refunds. We met with Revenue to seek greater clarity and assurances from Revenue, as the ability to avail of a VAT refund is often the difference between whether a farm investment project goes ahead or not.”

“We held a useful exchange with Revenue and agreed to make a follow up submission on the treatment of automatic cluster removers, as they are an integral part of modern milking machines and it makes no sense to treat them separately. We received assurances from Revenue that VAT refunds are eligible for milking parlour and bulk milk tank installations, whether it’s a new or existing building, as long as construction, extension, alteration or reconstruction work has been carried out.”

Mr. McEnteggart concluded “It is essential that farmers continue to receive and avail of the supports required to upgrade and modernise their farming enterprises and to make them more efficient and productive for the current and next generation”.

Milk Quality Ireland was established in 1989 with the aim to improve milk quality standards in Ireland and to ensure that Irish milking machine installation and testing standards equate with the best international standards. The organisation maintains a register of milking machine technicians who have undergone approved training and certification.