Agricultural activities

For Value-Added Tax (VAT) purposes, a farmer is someone whose supplies consist of agricultural produce, agricultural services or a mixture of both, with certain exceptions. Depending on the nature of your farming business, you may have to register for VAT.

Farmers who solely engage in agricultural production do not have to register for VAT, but may choose to register.

A farmer who supplies agricultural services (in addition to carrying on a farming business) must register and account for VAT:

  • where he or she exceeds
  • or
  • is likely to exceed, the VAT threshold for services.

Farmers supplying only insemination services, stock-minding or stock-rearing, can elect to register for VAT. They are not required to register otherwise.

Further guidance contains more detailed information on the VAT treatment of agricultural services.

Farmers and the Flat-rate Scheme

Farmers who are not registered, or required to register, for VAT are commonly referred to as flat-rate farmers. A special Flat-rate Scheme exists to compensate farmers for VAT incurred on their farming costs. 

Further information on the Flat-rate Scheme can be found in Related topics.