Commentary

V2.191 Flat-rate scheme for farmers—outline and purpose

Part V2 Registration – deregistration

V2.191 Flat-rate scheme for farmers—outline and purpose

V2.191 Flat-rate scheme for farmers—outline and purpose

The UK operates a flat rate scheme for farmers, also referred to as the agricultural flat rate scheme and the farmers flat rate-scheme. UK provisions are found in VATA 1994, s 54 and SI 1995/2518, regs 202–211. The scheme is an alternative to VAT registration for farmers and came into effect in the UK on 1 January 19931. HMRC's views on the operation of the scheme are set out in Notice 700/46/212.

While the UK was an EU member state, its provisions were derived from Archived Directive 2006/112/EC, arts 295–305 (formerly Directive 77/388/EEC, art 25) which (as at IP completion day) authorised member states (and therefore the UK) to introduce a flat-rate scheme.

The meaning of 'farmers' and of the flat-rate scheme

For the purposes of the scheme, a farmer is someone who engages in any of the 'designated activities'3.

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial