Farmers and the Flat-rate Scheme
The flat-rate addition
The flat-rate addition is a percentage amount that unregistered farmers add to their price when supplying:
- agricultural produce
- or
- agricultural services
to a Value-Added Tax (VAT) registered business.
The flat-rate addition is calculated as a percentage of the amount payable to the flat-rate farmer for their supplies.
The VAT-registered business treats the flat-rate addition in the same way as normal input VAT. It includes the amount as a VAT deduction on its VAT return.
The flat-rate addition is not payable to a flat-rate farmer in respect of supplies of goods or services to another flat-rate farmer.
Further guidance contains more detailed information on the Flat-rate Scheme for farmers.
Further information on the percentage rate of flat-rate addition can be found in Related topics.
Next: What is a flat rate invoice?