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.