Farmers and the Flat-rate Scheme

What is a flat rate invoice?

Flat-rate (unregistered) farmers supplying agricultural produce or agricultural services to an accountable dealer must issue an invoice if:

• the purchaser requests it
• the purchaser provides the form for the invoice and enters the appropriate particulars on it
• and
• the purchaser gives the flat-rate farmer a copy of the invoice.

A flat-rate farmer may choose to issue the invoice even if any of these conditions are not fulfilled.

Details on a flat-rate farmer’s invoice

An invoice issued by a flat-rate farmer in respect of agricultural produce or an agricultural service is required to be acknowledged by that farmer. The invoice must include the following particulars:

• The date of issue of the invoice.
• The full name and address of the flat-rate farmer who supplied the goods or services to which the invoice relates.
• The full name, address and registration number of the person who received the goods or services.
• The person’s Value-Added Tax (VAT) identification number in another Member State. This applies in the case of a supply of these goods or services to that person registered for VAT in their Member State
• The quantity and nature of the goods supplied or the extent and nature of the services rendered.
• The date on which the goods or services were supplied.
• The price, exclusive of the flat-rate addition, for the supply.
• and
• The rate and amount of the flat-rate addition appropriate to the price shown on the invoice.

Price changes after invoice has issued

If the price increased after the issue of an invoice:

• a flat-rate farmer must issue a further invoice
• and
• the invoice should contain the additional amount and is subject to the same conditions as applied to the preparation of the original invoice.

If there is a reduction in price after the issue of an invoice:

• the farmer must issue a farmer credit note
• and
• the purchaser must make a corresponding adjustment in the amount of flat-rate credit claimed as a deduction.

Next: Flat-rate farmer credit note requirements