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The EU Commission is working on plans to permit member states to apply a 0% VAT rate for vaccines used for veterinary purposes, according to the vice president of the European Parliament Mairead McGuinness.
VAT is currently charged at 23% for animal vaccines in Ireland and the IFA estimates that a drop to a 0% VAT rate could save farmers €10m per year.
“IFA has actively campaigned for this approach for a number of years in order to reduce the cost of vaccines for farmers; and to provide some of the tools necessary to reduce dependence on antibiotics on farms and help in promoting the prevention is better than cure approach,” IFA animal health chair Pat Farrell said.
Farrell also welcomed the clarification that VAT on other medicinal products could be reduced from 23% to 5%, and stated that the Minister for Agriculture Michael Creed, must ensure that the lower rate of VAT is applied as soon as possible.
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