Value Added Tax

Farming and other rural activities

Produced by Tolley
  • 10 May 2022 10:50

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...

Farming and other rural activities

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 and for a general overview of the scope of zero-rating for food, see the Liability ― food and catering guidance note.

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 Liability ― food and catering guidance note.

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

See also the Liability ― food and catering 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 Liability ― food and catering guidance note.

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 which the animal is kept

  3. a standard-rated supply of care

Grazing

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