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Dáil
‹ Ceisteanna ar Pholasaí nó ar Reachtaíocht - Questions on Policy or Legislation

Broiler-house chickens VAT dispute

Summary

Richard O'Donoghue raised confusion between Revenue and the Department of Finance over whether broiler-house chickens must register for VAT. The Taoiseach said Revenue was the key authority, asked for the details, and said there had been past challenges requiring changes.

A letter was sent from Revenue's VAT interpretation and litigation branch of its taxes policy and legislation division to the Irish Farmers Association, IFA, stating that broiler-house chickens must be registered for VAT this year. Revenue is now saying they do not have to be registered but the Department of Finance is saying they do. A total of 83% of broiler-house chickens are on farms that are subject to zero VAT. If their owners register for VAT as another identity, that cannot be done under the one tax number. The Minister for Finance has created something mad. Now farmers are being forced to form limited companies. Revenue is saying they do not have to register for VAT but the Minister is saying they must do so. The letter was also sent to two members of the Department. Will the Taoiseach give an answer on this? Do broiler-house chickens have to be registered for VAT?

Comment on this
Verona Murphy An Ceann Comhairle Independent

I am sure there will be further engagement on the matter.

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Does the Deputy expects me to bring clarity to that presentation?

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Revenue is the guiding light, obviously, in this matter. I will discuss it with the new Minister for Finance but I would have thought Revenue implements the impact of the legislation faithfully and dutifully.

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I will send the Taoiseach the details.

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If the Deputy can do so, I would appreciate it. There were some challenges some time back in terms of that entire issue. If I am thinking of the same issue the Deputy referenced, there was a reason change had to happen. Revenue will identify what is required.

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Verona Murphy An Ceann Comhairle Independent

There will be further engagement.

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