Monaghan IFA Farm Business Chairman, Andrew McConkey, has reminded farmers to make sure that they reclaim VAT paid by them in relation to expenditure on farm buildings and land drainage works for the purposes of their farming business.

He said, "Farm enterprises require regular re-investment to improve the efficiency of the operation. Farmers must make sure that they avail of the VAT refund available on many of their farm investments, as a means of reducing the costs of doing business".

Farmers who are not registered for VAT may reclaim VAT paid by them in relation to:

-         Construction, extension, alteration or reconstruction of farm buildings and structures; and

-         Land drainage and land reclamation.

Structures can include a farmyard, a farm road and a concrete path adjacent to farm buildings.

Mr McConkey continued, "Earlier this year, following discussions with the IFA, and taking into account changes in farm structures in recent decades, the Revenue Commissioners expanded the VAT Refund for flat-rate farmers to include:

-         Underpasses to accommodate the transfer of livestock, where land is separated by a public road;

-         Hedgerows that are planted by the farmer with the ultimate aim of stock proofing; and

-         Ploughing and re-seeding undertaken as part of land reclamation".

The time limit for all VAT refund claims is four years after the end of the taxable period to which the claim relates.

Claims for VAT-refund repayment should be made on Form VAT 58  - Claim by Unregistered Farmer for Refund of Value-Added Tax, and sent to:

Office of the Revenue Commissioners,

VAT Unregistered Repayments,

3rd Floor,

River House,

Charlotte Quay,

Limerick.