With the poor spring weather in 2018 there has been a rise in the use of alternative bedding, with many farmers deciding to use peat or woodchip instead of straw.

When contacted by the Revenue they clarified VAT rates on different types of bedding which are listed below:

  • The sale of animal bedding made from straw is liable to the zero rate of VAT (0%) where the straw is of the same kind as animal food. Otherwise, it is liable to the standard rate of VAT (23%).
  • The sale of animal bedding made from peat is liable to the reduced rate of VAT (13.5%).
  • The sale of animal bedding made from sawdust is liable to the standard rate of VAT (23%).

    • There’s been some confusion on the amount of VAT that should be paid on certain types of bedding, particularly peat with 23% VAT attached to peat for horticultural use and 13.5% VAT for the same type of peat used for animal bedding purposes.

    If farmers have been overcharged VAT on bedding the Revenue confirmed that the onus was on the seller to refund the VAT.

    “Where a trader charges the incorrect rate of VAT on their supply, they should first issue a credit note for the original invoice and then issue a revised invoice showing the correct VAT,” Revenue told the Irish Farmers Journal.

    “The recovery of any difference in the price resulting from the VAT change is a matter between the seller and the buyer.”

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