Revenue has confirmed to the Irish Farmers Journal that it considers computerised calf feeders to be “moveable goods” and are therefore not eligible for VAT reclaim.

VAT reclaim is available to non-VAT-registered farmers on certain expenses incurred, such as construction of farm buildings, fencing, drainage and reclamation of land, as well as solar panels.

However, VAT is not able to be claimed on the purchase of moveable goods such as farm machinery.

The move by Revenue to consider computerised calf feeders, which are either bolted to concrete floors or set in concrete as moveable items, raises further questions.

The Irish Farmers Journal understands that some farmers are having difficulty in getting VAT reclaimed on other items also, such as drafting gates and robotic yard scrapers, with applications now being rejected by Revenue.

As non-registered farmers were previously able to claim VAT back on these items, it seems that Revenue policy has changed.

According to IFA farm business chair Rose Mary McDonagh, the organisation is engaging with Revenue on the issue and wants VAT reclaim to be available on all fixed items.

Farmers in receipt of TAMS grants for computerised calf feeders can only claim on the reference cost excluding VAT.

If VAT cannot be reclaimed on certain items then the reference costs will be expected to increase, as a result.