Revenue for more than 27,000 “58 VAT refund claims” totaling €66 million was refunded to farmers at a flat rate last year according to the latest figures.
But the total refunds for 2025 are down significantly from the total refunds just a year ago – which ended at €67 million for 2024 and also compared to the amount paid in 2023 on VAT refund claims.
Total recoveries under the Fixed Price Farmers Order Source: Revenue
According to the Revenue, there is no breakdown available regarding the specific expenditure areas on which refunds have been issued.
The flat rate FFR system is for farmers who are not registered, or required to register, for value added tax (VAT).
These farmers are commonly referred to as fixed-rate farmers. The majority of farmers are not registered for VAT.
These farmers are permitted to add and retain a percentage of the duty – known as a flat rate addition – to the amount they invoice VAT registered companies to which they supply agricultural goods and services, including livestock, in the course of their farming businesses.
The fixed addition level is calculated in accordance with the EU VAT Directive, is reviewed annually and is set out in Irish VAT legislation.
The fixed rate addition was 5.1% in 2025.
in Budget 2026 It was announced that the fixed addition rate for farms will fall to 4.5% from January 1 this year.
Flat price
Generally, flat rate farmers cannot deduct VAT on their business costs.
According to the Revenue, VAT can only be recovered for non-registered farmers in respect of costs incurred:
- To build, extend, alter or rebuild that part of agricultural buildings or structures;
- To fence, drain or reclaim any agricultural land;
- To construct, erect or install qualified equipment for the purpose of partial generation of electricity for use solely or mainly in agricultural work.
Farmers must submit reimbursement claims on VAT Revenue Form 58.
Under current revenue rules, agricultural structures are “man-made structures that are anchored to or in land and cannot be easily dismantled or moved, such as farm roads, farmyards, and silage pits.”
Certain types of equipment – such as automatic calf feeders – are not eligible for a VAT refund.
From 1 September 2025, broiler services are also excluded from the FFR scheme.
