For Value-Added Tax (VAT) purposes, a farmer is someone whose supplies consist of agricultural produce or 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.
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. For the purposes of calculating the threshold, a farmer should exclude income from the following agricultural services:
- insemination services
Insemination services, stock-minding and stock-rearing
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 and farmers.