Farmers who are not registered for VAT can get a refund on the VAT element of any invoices relating to capital expenditure, eg land improvement, yards, fencing, drainage or buildings and fixed equipment, such as milking parlours, scrapers, bulk tanks, etc (repairs are not covered).
VAT
You can claim VAT back on items purchased in the last four years. The application must be made online via a VAT 58 application form.
Of late, we have heard of many farmers having significant delays and refusals for certain items. Let us know of any difficulties encountered and we will do our best to get answers for you.
Derogation decides investment
I hear of some farmers getting thrown out of their nitrates derogation sometimes months after having an inspection.
It is catastrophic for any farm business to get such a penalty, especially after such a long interval.
In some cases I have heard it might be a very small misdemeanour. The punishment must proportionate to the crime.
Small offences
There should be leniency for first-time offenders and small offences. A farmer having to reduce stocking rate is like saying to a shopkeeper to leave shop shelves bare. In addition farmers need their most up to date stocking rate position available in real time. Clearly farmers are waiting before investing.
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