Agricultural flat rate scheme (AFRS) ― eligibility

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note covers the eligibility requirements that must be satisfied for a farmer to join and remain within the agricultural flat rate scheme (AFRS). The scheme is sometimes also referred to as the farmers’ flat rate scheme and the flat rate scheme for farmers.

For an overview of the AFRS more broadly, see the Agricultural flat rate scheme (AFRS) ― overview guidance note.

For in-depth commentary on the legislation and case law relating to eligibility for AFRS, see De Voil Indirect Tax Service V2.192 and V2.193.

Conditions for certification as a flat rate farmer

To join the agricultural flat rate scheme (AFRS), the farmer must:

•
satisfy HMRC that they are carrying on a business which involves one or more ‘designated activities’ (see further below)
•
not, in the three years before the date of application for certification, have been:
1. ◦
  convicted of any offences in connection with VAT
2. ◦
  penalised for a VAT offence under CEMA 1979, s 152
3. ◦
  assessed to a penalty for VAT evasion involving

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