The National Dairy Council (NDC) is at the centre of a dispute with Revenue over claims made for the repayment of more than €815,000 in VAT, the Irish Farmers Journal can reveal.

In January this year, Revenue wrote to the NDC to say it was refusing to repay €815,176 in VAT repayment claims made by the dairy marketing organisation.

It is understood that Revenue is insisting the NDC is not entitled to reclaim VAT credits as it provides a marketing service for its members, which is subject to VAT.

The NDC said it has appealed the ruling by Revenue to the Tax Appeals Commissions and is optimistic of a successful outcome.

Finances

Separately, recently filed accounts for the NDC show the organisation’s budget has soared since the end of milk quotas.

For 2019, the NDC’s income stood at just over €5.5m, which is almost 90% higher than where it was back in 2014 – the last full year of quotas.

Income derived from farmer levies stood at €3.5m last year, which is up 32%, or €860,000 higher, than where it was in 2014.

Almost two-thirds (64%) of the NDC’s income is derived from farmer levies, with the rest coming from EU grants, donations and some additional funding from Ornua.

Since the end of quotas, expenditure by the NDC has also risen sharply. For 2019, total expenditure was just over €4.9m – up almost 70% since 2014. There’s no detailed breakdown of the NDC’s expenditure.

During that time, costs for the NDC’s nine staff have risen by 57% to €806,512, while remuneration for key management has increased 28% to just under €285,000.

The NDC recorded an operating surplus of almost €600,000 last year.

The organisation has an accumulated surplus of just over €2.1m on its balance sheet.

The €815,000 sum that Revenue has ruled the organisation is not entitled to represents 40% of the NDC’s entire balance sheet at year-end 2019.