VAT Refund (v58)

Agricola

Have to buy some fencing soon for land that I am currently renting to a local farmer. He told me the VAT on this can be re-claimed. My question is do you need to be farming the land yourself in order to qualify for this? Revenue in Limerick said you do and the only option for me would be to claim the vat back as expenses against the rental income, the company selling the fencing believed anyone could fill in the v58 form and submit it.......

Justjens

If you are availing of tax relief for long term rental then ASAIK you cannot reclaim VAT on works/materials for that rented land, although you can claim the expenses to some level but I'm not 100% certain, probably just to reduce prsi/usc liability.

If it's rented out on 11 month lease I don't see why not as you are paying income tax on the rental income.

Have you any land you farm yourself?

WheatenBriar

Yes,you have to be a trading farmer,it's a concession to flat rate farmers who are not registered for VAT as I understand it

Farmer Pudsey

Agricola wrote: »

Have to buy some fencing soon for land that I am currently renting to a local farmer. He told me the VAT on this can be re-claimed. My question is do you need to be farming the land yourself in order to qualify for this? Revenue in Limerick said you do and the only option for me would be to claim the vat back as expenses against the rental income, the company selling the fencing believed anyone could fill in the v58 form and submit it.......

Yes anyone can fill one out and submit it...............however you have to be farming for them to pay you. I also think you have to be making a tax return as a farmer to get paid this is to avoid lads claiming that are not making tax returns (tax compliant) however not sure. Invoice has to be in the name of the registered farmer if there is a name on it. They will pay on an invoice with no name on it.

You could get the farmer that is renting the land to buy the material and you knock the amount less VAT off the rent. However not sure if this would be tax compliant.

Agricola

Justjens - Yes, it is an 11 month lease. Thats what revenue mentioned, it could possibly be re-claimed as expenses but tbh, I would have to get the accountant on that and his fee would negate any saving made!
Extent of my farming is cutting hay off about 5 acres around the house every year. Nothing official.

Thanks for replies anyway lads. Looks like my best bet might be getting the farmer to order the materials and deducting it from the rent.

lakill Farm

Agricola wrote: »

Justjens - Yes, it is an 11 month lease. Thats what revenue mentioned, it could possibly be re-claimed as expenses but tbh, I would have to get the accountant on that and his fee would negate any saving made!
Extent of my farming is cutting hay off about 5 acres around the house every year. Nothing official.

Thanks for replies anyway lads. Looks like my best bet might be getting the farmer to order the materials and deducting it from the rent.

ye that's the best bet, as if your not registered as a farmer with revenue then they will not refund the vat58.

just do it

Agricola wrote: »

Justjens - Yes, it is an 11 month lease. Thats what revenue mentioned, it could possibly be re-claimed as expenses but tbh, I would have to get the accountant on that and his fee would negate any saving made!
Extent of my farming is cutting hay off about 5 acres around the house every year. Nothing official.

Thanks for replies anyway lads. Looks like my best bet might be getting the farmer to order the materials and deducting it from the rent.

You can do the return yourself, it's not that difficult. Revenue website is very helpful. Claiming as expense in 1 year works out just as good as vat reclaim in year 1 and then cap ex over next 8 years.