Registration for farmers and agricultural services

Do farmers have to register for VAT?

If you engage solely in agricultural production activities, you are not obliged to register for Value-Added Tax (VAT). From 1 January, the normal registration rules apply to farmers engaged in broiler chicken services.

You are obliged to register for VAT where:

• Your annual turnover from agricultural contracting activities other than insemination services, stock minding and stock rearing exceeds €42,500 in the current or previous calendar year.
• Your annual turnover from sales of bovine semen, exceeds €85,000 in the current or previous calendar year. Note: this turnover figure excludes sales to other farmers licensed as an Artificial Insemination centre or supplies to persons over whom you exercise control.
• Your annual turnover from retail sales of horticultural products exceeds €85,000 in the current or previous calendar year.
• Your annual turnover from sales of bovine semen and retail sales of horticultural products exceeds €85,000 in the current or previous calendar year.
• Your annual turnover from agricultural services or produce of the kind specified in an order made under 86A, exceeds the appropriate thresholds in the current or previous calendar year. 
• Your annual turnover from taxable goods or services, other than any exclusions mentioned above, exceeds the appropriate thresholds in the current or previous calendar year. 

You must also register where: 

• You are in receipt of services which are taxable where received. 
• Your annual turnover from intra-Community acquisitions exceeds, or is likely to exceed €41,000.

You may also elect to register for VAT.

Further guidance contains more detailed information on the VAT treatment of farmers.