Commentary

V2.198 Flat-rate scheme for farmers—special situations

Part V2 Registration – deregistration

V2.198 Flat-rate scheme for farmers—special situations

V2.198 Flat-rate scheme for farmers—special situations

Auctioning agricultural produce—flat-rate farmers

If auctioneers act as agents for a flat-rate farmer, they do not take title to the goods. As the goods remain the property of the non-VAT registered flat-rate farmer, the sale will not attract VAT. Flat-rate farmers will not be able to charge the flat-rate addition to the auctioneer but they will be able to charge the flat-rate addition to the ultimate buyer of the goods if the purchaser is VAT registered1.

If auctioneers act as principals, then they are taking title to the goods as VAT-registered persons and the goods

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