Dáil Éireann Debate, Tuesday - 9 December 2025
283. Deputy Albert Dolan asked the Tánaiste and Minister for Finance the current VAT policy in respect of UK customers purchasing livestock animals in Ireland for export to the UK; and the reason UK buyers are required to pay VAT upfront and subsequently claim a refund given that the animals are being exported; and if he will make a statement on the matter. [69037/25]
Amharc ar fhreagraThe VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within certain categories to which Member States may apply a lower rate. The VAT Directive also provides a zero rating for the export and intra-EU supply of goods under certain conditions.
The supply of livestock animals is subject to the super reduced rate of 4.8%, otherwise known as the livestock VAT rate. However, the supply may be liable to the zero rate if the goods are exported as is the case with all exports of goods outside the EU, for example to Great Britain.
For the zero rate to apply, the goods supplied (e.g. the livestock) must be dispatched or transported directly by, or on behalf of, the supplier or the purchaser to a destination outside the European Union. Where the purchaser dispatches or transports the goods, they must be established outside the State for the zero rate to apply. The supplier of exported goods must ensure the goods have left the EU and retain evidence that the goods have left the EU. Further VAT guidance on exporting goods is available on Revenue.ie https://www.revenue.ie/en/vat/goods-and-services-to-and-from-abroad/vat-and-exports/index.aspx
Supplies of goods to businesses in Northern Ireland are subject to the same rules as any other intra EU cross-border supply of goods. Subject to certain conditions, a supply of goods, including livestock, to a business in Northern Ireland would be liable to VAT at the zero rate. The Northern Irish business would be liable to self-account for the equivalent UK VAT in Northern Ireland to the HMRC. Further VAT guidance on cross-border supplies of goods is available on Revenue.ie https://www.revenue.ie/en/vat/goods-and-services-to-and-from-abroad/intracommunity-supplies/index.aspx
Where a business has been incorrectly charged VAT by their supplier, they should in the first instance resolve the matter with their supplier. In most cases this will resolve the matter. However, if the matter cannot be resolved through agreement, the business may contact their local Revenue Branch. They should provide details of the supplier, the nature of the supply and how the goods were dispatched and transported taking into the requirements set out above and in Revenue’s published guidance.
Subject to certain conditions, businesses operating in the UK and who are charged Irish VAT can reclaim that VAT directly from Revenue, either through the electronic refund facility (EVR) available to Northern Irish businesses or via the 13th VAT Directive claims process available to Great Britain businesses. However, these facilities cannot be used to reclaim Irish VAT incorrectly charged by a supplier. Instead, the business should resolve the matter with their supplier and may contact their local Revenue Branch if the matter cannot be resolved.
Further information on the EVR is available on Revenue.ie https://www.revenue.ie/en/vat/repayments-to-unregistered-persons/foreign-traders-and-vat/foreign-traders-established-in-the-eu-paying-irish-vat.aspx
Further information on the 13th VAT Directive process is available on Revenue.ie https://www.revenue.ie/en/vat/repayments-to-unregistered-persons/foreign-traders-and-vat/foreign-traders-established-outside-the-eu-paying-irish-vat.aspx
As a matter of policy, Revenue does not refund VAT that was incorrectly charged. To do otherwise would expose the Exchequer to loss and create a significant compliance risk, given that, under VAT law, a supplier who charged the VAT would still have an entitlement to reclaim this VAT within four years subject to certain conditions.
The Deputy is welcome to supply details of any cases that have been directly raised with him, so that Revenue can look into the matter. He will appreciate, though that they will not be able to disclose the outcome of any investigations, owing to their statutory obligation to preserve taxpayer confidentiality.
