A source has informed the Irish Farmers Journal that despite recent calls for slurry bags to be VAT exempt for unregistered farmers, the Department of Finance has confirmed that changes will not be made.

Tipperary TD Jackie Cahill had called on the Department of Finance to review the VAT status of slurry bags.

Deputy Cahill had told the Dáil that while certain items were VAT reclaimable for unregistered farmers, slurry bags did not qualify, as they were seen as a mobile item.

"Anyone who would see a slurry bag that is put into operation would know that it is not possible to move it," stated Cahill. The general rule of thumb regarding VAT exemption is that mobile items are not eligible, with slurry bags viewed as mobile.


The above follows on from recent confirmation from the Department of Agriculture that slurry bags would be eligible for TAMS III aid under geo-membrane lined stores, which will require planning permission in order to receive TAMS aid.

Deputy Cahill had called on the Department of Finance to declare slurry bags VAT exempt in order to remove barriers to creating additional slurry storage on farms.

"In an era when we are trying to increase slurry capacity on farms, to put this extra cost on farmers is just not acceptable," he said.

Minister of State Malcolm Noonan informed Deputy Cahill that the VAT treatment of goods and services is subject to European Union law, with which Irish law must comply.