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Accounting For Farmers

jhilljhill Settling In NicelyRegistered Posts: 23
I Have been asked if i can find out the following by a farmer who is VAT reg.

He wants to know if he should charge VAT on his crops such as wheat, barley, oats.

Anyone done similar work.

all advice appreciated.


  • DeanDean Experienced Mentor DevonRegistered Posts: 646

    He would not charge VAT on those 'crops'. Presumably, they are grow for human or animal consumption? If this is the case they are classified as zero-rated. Further guideance here:http://customs.hmrc.gov.uk/channelsPortalWebApp/downloadFile?contentID=HMCE_PROD1_023508


  • jhilljhill Settling In Nicely Registered Posts: 23
    thanks -
  • Rose_PetalRose_Petal Just Joined Registered Posts: 3
    My understanding is this - most crops are foodstuffs and are therefore zero-rated. However, there are some crops which are used for pharmacutical or bio-fuel are these are usually standard rated. Straw is also usually standard rated as it used for bedding (although it could be argued that some animals do eat their bedding) but hay is zero-rated because again it is feed. Any help?
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