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. … A farmer or land owner can therefore rent out a paddock or grazing to a horse owner without having to charge VAT.
Is hay zero rated?
The sale of hay for consumption by livestock is zero-rated, but some animals that may normally be considered livestock could be kept as pets. … For these animals, their food can be zero-rated unless it is packaged or held out for sale in a way that shows it is intended for a pet.
Is there any VAT on straw?
Some other items can have both standard rated and zero rated treatment depending on how the item is treated e.g. bedding straw is standard rated and feed straw is zero rated. There are numerous other supplies where the rate of VAT to be charged needs to be considered.
Is there VAT on animal feed?
Usually, the right to graze is a zero-rated supply of ‘animal feeding stuffs’. However, HMRC argue that the supply of animal feeding stuffs as part of the service of keeping animals is not a composite supply and VAT arises on the total price at the standard rate (Notice 701/15/2011, para. 9.6, 10.2 and 10.3).
Is there VAT on silage bales?
Most silage enhancers, including all bacterial products, are not classed as feeding stuffs for VAT purposes, as they are not themselves fed to the animal, either straight or as an ingredient in a feed. … The liability of silage products depends on their primary use, and whether they can be fed direct to animals or not.
Do farmers pay VAT?
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.
Do you pay VAT on pets?
Animals that will be kept as pets can be zero-rated only if they are of a kind that is normally used for human food production. For example, rabbits, other than ornamental breeds, are always zero-rated.
Is food VAT exempt?
Most food is VAT-free but you do pay VAT on some food. Some items for human consumption are standard-rated. This includes catering, alcoholic drinks, confectionery, crisps and savoury snacks, hot food, sports drinks, hot takeaways, ice cream, soft drinks and mineral water.
Is there VAT on animal medicines?
If an animal feed product makes medicinal claims, it is only a medicine for the purposes of VAT if it has the above marketing authorisation. VMD guidance views such products as medicinal by function or medicinal by presentation; but a product is not legally a medicine unless it has that authorisation.
What is zero rated VAT?
Zero-rated means that the goods are still VAT -taxable but the rate of VAT you must charge your customers is 0%. You still have to record them in your VAT accounts and report them on your VAT Return. Examples include: books and newspapers.
What products are exempt from VAT?
VAT exemption for goods and services
- Sporting activities and physical education.
- Education and training.
- Some medical treatments.
- Financial services, insurance and investments.