4. Flat-rate vat:
Ensure that this is being paid to you at the rate of 5.4% on all sales from 1 January 2017. Vat 58 form –reclaim by unregistered farmers on capital expenditure.
You are entitled to reclaim vat on capital expenditure on buildings, yards, fencing, drainage, etc, and fixed plant.
You only have four years to reclaim the vat.You can only reclaim back to 2014 at this stage.Review your vat reclaims and ensure you have reclaimed all you are entitled to.5. Ceasing to farm:
Vat reclaimed in the last 12 months prior to ceasing is repayable to Revenue. Watch the date you cease.
6. Vat on farm sale:
If you are selling the farm or a portion where you completed buildings within five years of the vat reclaim, you will be liable to vat on the sale. Review the reclaim history and be aware of any vat liability.
7. Vat-registered farmers:
Ensure that you do not collect the flat-rate vat. Inform those who you sell to that you are registered for vat. Ensure that you have all invoices for the vat return. Ensure that you reclaim vat on purchases of stock from unregistered farmers. Vat on livestock is at 4.8% when you are registered.
8. Sale of SFPE/BPS:
If selling same, a sale amount in any 12 months of an amount over €37,500 will be liable for vat. You would need to register and charge the VAT and pay to Revenue the VAT charged.
9. Vat trap:
If you carry on agricultural services and the turnover exceeds €37,500, you must register for VAT. This could bring the whole business into the VAT net. Proper planning can avoid this.
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