Farmers in the North West have reacted angrily to the fact that those not registered for VAT have had a reduction in their "flat-rate addition" compensation when selling animals at marts.
A number of local Marts have also criticized the move.
The rate has been reduced from 5.1% in 2025 to 4.5% this year.
It means non-VAT registered farmers in Ireland will receive less VAT compensation on their sales, with calculations indicating a loss of approximately €2.86 for every €1,000 worth of livestock sold.
The changes will only effect mart sales and not factory sales.
Sligo Independent Councillor Michael Clarke says the marts will not gain from the increase, adding that it's the government will receive the funds.