Are livery stables VAT exempt?

Broadly, the VAT position for those providing stabling, grazing or livery is as follows: The letting of a stable alone is exempt from VAT, subject to the ‘option to tax’. The supply of ‘keep’ (or care or livery services) including stabling and feed is one standard-rated supply with no apportionment.

Is there VAT on livery fees?

If you are providing full or part livery services such as mucking out, feeding, grooming and general care, this will be standard rated for VAT purposes. If you are providing grass livery this is treated as zero-rated and you can therefore reclaim VAT on costs relating to this service without charging your client VAT.

Can farmers reclaim VAT on fencing?

VAT is recoverable on the construction, extension, alteration or reconstruction of a building or structure which is designed for use solely or mainly for the purposes of a farming business, fencing, drainage or reclamation of any land for use for the purposes of a farming business, or construction, erection or …

Can a farm be VAT registered?

If you register as a flat rate farmer, you do not account for VAT or submit returns and therefore cannot reclaim input tax. However, you can charge and keep a flat rate addition (FRA) when you sell goods or goods and services to VAT registered customers.

Is VAT payable on grazing?

A supply of grazing rights is zero rated as animal feeding stuffs. If, however, care of animals is provided for in the relevant agreement other than merely incidental care, the entire supply is treated as liable to VAT at the standard rate.

Is horse feed VAT exempt?

Animal feed is zero rated for VAT provided it is not packaged as pet food, therefore hay, cereals and other feeds do not carry VAT if you sell them to outside clients. However, if they are provided as part of your service, they are standard rated for VAT.

Is there VAT on animal feed?

The zero rate may extend to food-grade additives and chemicals solely for use in animal feeding stuffs. However, the standard rate applies to animal feeding stuff which is packaged, sold or otherwise designated for the use of dogs, cats, cage birds or domestic pets. Pigeon feed is zero rated.

Do farmers have a VAT number?

No farmer or farming company is obliged to register for VAT, but some do and many wonder if they should. Every farmer incurs quite a substantial annual VAT cost on farm inputs and services with the exception of feedstuffs, fertilisers, seeds and oral animal medicines.

Is VAT payable on horse sales?

VAT SCHEME for Second Hand Horses & Ponies Businesses buying and selling goods can usually recover the VAT they are charged on their stock as input tax. But if, as is often the case with horses, you obtain most of your stock from members of the public who are not VAT registered, you will have no VAT to recover.

Do you pay tax on horses?

Horses such as these qualify for tax purposes as wasting (life expectancy of less than 50 years) chattels, which are exempt from capital gains tax (unless they are used in a trade and capital allowances have been, or could have been, claimed on them).

Do you pay VAT on horses?

The sale of horses is a taxable supply for VAT purposes with VAT chargeable at 20% (unless the second hand margin scheme applies) for transactions within the UK.

Are charities exempt from VAT?

Are charities exempt from VAT? Charities are not VAT exempt. Just like non-charitable organisations, a charity must register for VAT with HMRC if its VATable sales are over the VAT threshold.

Can you get VAT back if not registered?

Can I get it back? If you are not VAT registered then you will not be able to reclaim any VAT unless you are a visitor from overseas. If you are a VAT registered trader, then you will normally offset the VAT you have been charged by your suppliers against the VAT you have charged your customers.

Is there VAT on milk sales?

Standard or zero rated Standard rated goods have the standard rate of VAT added to the selling price while zero rated goods do not have any VAT added to the selling price. Zero rated items include most of the goods you will sell, such as: milk and dairy products. eggs, potatoes, bread and other food items.

Are farmers VAT exempt?

Farmers generally produce food items which are ‘zero rated’ i.e. VAT is not charged on them, however they are still entitled to reclaim VAT on the cost of pro- ducing those goods. Farmers are often ‘net reclaimers’ of VAT, this means that they claim back more VAT from HMRC than they pay.