Farmers and the Flat-rate Scheme

Issuing a settlement voucher

A Value-Added Tax (VAT) registered person may prepare a settlement voucher when making a purchase from an unregistered farmer. Where that settlement voucher:

  • is issued prior to the issue of a flat-rate invoice
  • contains all the information required to be included on a flat-rate invoice
  • and
  • is accepted by both parties to the transaction

it is deemed to be a VAT invoice in respect of that transaction. 

Settlement vouchers and broiler chicken services

A VAT registered person can no longer issue a settlement voucher to a broiler chicken farmer, during the production of broiler chickens, for the supply of any agricultural service of:

  • stock minding
  • rearing
  • and
  • fattening. 

This follows their exclusion from the flat-rate addition and is effective from 1 September 2025. 

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