The National Dairy Council (NDC) annual report for 2025 shows that final agreement has yet to be reached with Revenue on resolution of the VAT issues at the body which led to a write down in the accounts of €3.7m in 2024.

Speaking to the Irish Farmers Journal, Emma Walls, CEO of the National Dairy Council, said final agreement has yet to be reached.

“Revenue has requested additional information related to the settlement offer, which NDC has provided. We are waiting for a response from Revenue,” she said.

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Issues

The NDC had carried a claim for refunds of VAT paid on purchases between 2016 and 2024 in its accounts. Following a decision by the Tax Appeals Committee in 2024 in favour of Revenue, the NDC could no longer carry that VAT claim as a recoverable debt, which led to the write down being taken in the accounts.

Separately, through its membership of the European Milk Forum – an EU-wide industry body for the promotion of dairy products – the NDC is facing a very similar looking potential VAT issue in France. The milk forum is subject to an audit from French tax authorities in relation to whether it is subject to VAT.

The NDC accounts show that its participation in the relevant EU projects amounts to €586,520. Overall, the NDC is due €745,135 from the European Milk Forum.

Walls said that the professional advice is that the milk forum is “more likely than not to succeed in recovering the VAT”.

Return to profit

Last year saw a return to profit at the NDC, with the €790,389 outrun helped by the increase in milk levy receipts to €4.53m from €4.29m in 2024. European Union grants were 12.5% lower at €979,892 while support from Ornua increased by €50,110 to €114,503. Staff costs increased by 12% to €1.11m.

Half of that increase was driven by once-off redundancy costs incurred as part of a restructuring programme as part of the organisational redesign undertaken during the year.

Walls explained that “restructuring, based on the new strategic framework approved by the board, involved identifying any role that was redundant, but also any gaps in the organisation”.

New roles

She said that two new roles were created during the year, an NDC guarantee manager and a financial controller.

Previously, finance was outsourced to an external accountant, not an employee.

The organisational changes meant there was no net change in the number of employees at the organisation.

The number of directors also remained unchanged at 11, with fees and expenses paid to those directors also little changed at €58,702.

Walls said that the new strategic framework for the organisation is built around four pillars. They are to protect our social licence to produce; to drive dairy consumption; to renew focus on the NDC guarantee; and to deliver the EU school milk scheme.