Farming and other rural activities

Produced by Tolley
Farming and other rural activities

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Farming and other rural activities
  • Live animals
  • Animal food
  • Plants, seeds, etc
  • Looking after livestock
  • Grazing rights
  • Livery
  • Keep of animals
  • Farmers
  • Business structures commonly used in farming
  • More...

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.

This guidance note provides an overview of the VAT implications associated with farming and other rural activities.

Live animals

The sale of many live animals will be zero-rated as they can fall within the scope of zero-rating for ‘food’. For details of the kinds of live animals covered by zero-rating, see the Food ― what is food? guidance note. See also the Food ― overview of zero-rating guidance note for a general overview of the scope of zero-rating for food.

Animal food

The supply of food that is fed to animals can generally be zero-rated as the zero-rating for food extends to animal feeding stuffs. For the meaning and examples of animal feeding stuffs, see the Food ― what is food? guidance note.

However, the zero-rating is subject to a number of important exceptions which are set out in the Food ― pet food guidance note.

See also the Food ― overview of zero-rating guidance note for a general overview of the scope of zero-rating for food.

Plants, seeds, etc

The zero-rating for food will also cover the supply of many plants and seeds which are used to produce human and animal food. For details, see the Food ― what is food? and Food ― overview of zero-rating guidance notes.

Looking after livestock

This activity may fall into any one of the following three categories for VAT purposes, depending on what precisely is provided to the owner of the animals:

  1. a zero-rated supply of grazing rights

  2. an exempt grant of a right or interest over the land on

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