VAT for Farmers & Landowners - Practical Issues, Recovery & Compliance

Introduction

VAT for farming businesses can often appear straightforward, with many core agricultural activities benefiting from zero-rating. This means VAT is not charged on certain sales, while VAT incurred on related costs can usually be recovered, often resulting in regular VAT repayments.

However, the increasing diversification of farming businesses has created additional VAT complexities. Income streams such as holiday lets, farm shops, cafés, contracting services and other commercial activities can create different VAT treatments and introduce challenges around VAT recovery.

Understanding when VAT can be reclaimed, when income may become taxable or exempt and how special rules apply is essential for farmers, landowners and those advising them. Particular care is also needed when dealing with land and property transactions, where the VAT rules can be complex and costly mistakes can occur.

Using practical examples and case studies, this new virtual classroom seminar will explore the key VAT issues affecting farming businesses and landowners. It will provide practical guidance on output tax, input tax recovery, partial exemption, special schemes and property-related VAT matters.

This session is suitable for anyone involved in preparing or reviewing farm accounts, including accountants, farm owners, bookkeepers, estate managers and advisers working with agricultural businesses.

This comprehensive 6-hour course will be delivered over two consecutive half-day sessions. The first session will focus on output tax, farming activities, special schemes and input tax recovery. The second session will cover partial exemption, land transactions and the Capital Goods Scheme.

What You Will Learn

This live and interactive session will cover the following:

• VAT Treatment of Farming Activities
• The key VAT principles affecting agricultural businesses
• The VAT treatment of common farming income streams
• Zero-rated, standard-rated and exempt supplies
• VAT treatment of livestock, crops and agricultural services
• Understanding when VAT can and cannot be recovered
• Special VAT Schemes for Farmers
• Overview of VAT schemes relevant to agricultural businesses
• The Agricultural Flat Rate Scheme
• Advantages, disadvantages and practical considerations
• When special schemes may be appropriate
• Input Tax Recovery
• The rules governing VAT recovery for farming businesses
• Recovering VAT on costs linked to taxable and zero-rated activities
• Identifying restricted or non-recoverable VAT
• Common errors and opportunities to improve VAT recovery
• Diversification and New Income Streams
• VAT issues arising from farm diversification
• Holiday letting and accommodation
• Farm shops, cafés and tea rooms
• Contracting and other additional income streams
• Managing different VAT treatments within one business
• Partial Exemption and Land Transactions
• Understanding partial exemption and when it applies
• VAT recovery where businesses have both taxable and exempt income
• Exempt income such as property letting
• VAT treatment of land and property transactions
• Common traps when selling, leasing or developing land
• Capital Goods Scheme and Practical Application
• The purpose and operation of the Capital Goods Scheme
• When the rules apply to agricultural businesses
• Applying VAT principles to real farming and landowner scenarios
• Avoiding common pitfalls and reducing VAT compliance risks

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.