new slatted shed

leoch

hi all I am building a new slatted shed shortly and I know it was talked on here a few times but can u claim back the vat from the new shed all at once when its finished or do u claim it back over 7/8 years ??

mf240

you claim the vat back in full straight away, then the price of the shed without vat is depreciated over eight years on your accounts.

leoch

thanks mf240 is that even though I am not vat registered?

locky76

leoch wrote: »

thanks mf240 is that even though I am not vat registered?

Yeah, it's a reclaim facility for non vat regostered farmers, i fill it out myself once a year for all the odds and ends which are capital costs and it's simple enough procedure, i then handle the reclaimed VAT as a farm income...
http://www.revenue.ie/en/tax/vat/forms/

NewBeefFarmer

reclaimed vat is income?

i suppose if your showing expenses and it includes VAT. . .

ive never done it (reclaim vat etc). . . nice to know how it works though.

thanks locky

limo_100

NewBeefFarmer wrote: »

reclaimed vat is income?

i suppose if your showing expenses and it includes VAT. . .

ive never done it (reclaim vat etc). . . nice to know how it works though.

thanks locky

are you also considering a shed NBF??

mf240

leoch wrote: »

thanks mf240 is that even though I am not vat registered?

Yes you don't need to be registered I see Locky has it explained there.

Brown Podzol

Without registering for VAT you may claim a refund of VAT suffered by you on the construction, extension or alteration of any building or structure used solely for farming together with fencing, drainage and reclamation of any land used. "Structure" includes farmyards, farm roads and concrete paths adjacent to farm holdings and the relief also applies to the purchase, hire purchase or lease of machinery, plant and equipment supplied and installed as permanent fixtures e.g. bulk milk tanks and milking machines.

The refund may only be claimed if the cost is treated as capital expenditure and capital allowances are claimed in your tax return. If the expenditure is claimed in your tax accounts as repairs, VAT is not refundable. IFAC

Brown Podzol

locky76 wrote: »

Yeah, it's a reclaim facility for non vat regostered farmers, i fill it out myself once a year for all the odds and ends which are capital costs and it's simple enough procedure, i then handle the reclaimed VAT as a farm income...
http://www.revenue.ie/en/tax/vat/forms/

I don't think reclaimed vat is income, just capital transfers.

massey265

But you have to be registered for income tax for your farm. Or maybe ya's know that already.

just do it

locky76 wrote: »

Yeah, it's a reclaim facility for non vat regostered farmers, i fill it out myself once a year for all the odds and ends which are capital costs and it's simple enough procedure, i then handle the reclaimed VAT as a farm income...

Strictly speaking it must be written off as a capital expense i.e. depreciated over 8 years.