Revenue has recently determined that VAT on certain expenditure incurred by unregistered (flat-rate) farmers on underpasses, hedgerows and land reclama-tion may qualify for refund under the VAT (Refund of Tax) (No. 25) Order 1993, subject to certain conditions.

Expenditure incurred by flat-rate famers on the following may qualify for a VAT refund:

Underpasses

Concrete underpasses (usually pre-cast) that have been designed specifically to accommodate the transfer of livestock from one plot of land to another, where a public road separates the land, come within the terms of the refund order.

Hedgerows

The reference to ‘fencing’ in the refund order includes hedgerows where they are planted by a farmer with the ultimate aim (on maturity) of stock proofing. However, the order does not cover hedgerows grown for other purposes e.g. ornamental or shelter of dwelling.

Land Reclamation

Expenditure allowable under this heading may include ploughing and re-seeding where they are an integral part of the land reclamation and are actually carried out as part of a land reclamation project.