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Farming as a company and flat rate vat refunds

  • 04-05-2021 3:00pm
    #1
    [Deleted User]
    Posts: 0 ✭


    If your farm is a company vat registered you do not get paid the flat rate 4.8% vat top up on milk
    However if you sell calves or cattle,its deducted and added back in your invoice and looks to me like its paid by the buyer not the government
    Simple example
    Calf makes 104 euros 80c
    Farmer is paid 100 euros minus commission etc
    The farmer is shown a receipt that says
    Gross 104.80
    Gross ex vat 100
    Vat 4.80
    Commission -7.00
    Paid to farmer €97.80

    The buyer there appears to have paid the flat rate government rebate...
    What have I missed
    How is it a government vat rebate if the buyer is funding it not the government?

    Also the seller in this example has to pay back that vat out of what they got from the mart
    So 4.8% of what the buyer bids goes to the government

    Now am I missing something here
    I thought the flat rate was a top up paid by the government to compensate for not being vat registered but having to pay vat on many things
    Yet in marts,it seems there is no top up at all?


Comments

  • #2
    yosemitesam1
    Registered Users, Registered Users 2 Posts: 3,024 ✭✭✭yosemitesam1


    Marine Layer wrote: »
    If your farm is a company vat registered you do not get paid the flat rate 4.8% vat top up on milk
    However if you sell calves or cattle,its deducted and added back in your invoice and looks to me like its paid by the buyer not the government
    Simple example
    Calf makes 104 euros 80c
    Farmer is paid 100 euros minus commission etc
    The farmer is shown a receipt that says
    Gross 104.80
    Gross ex vat 100
    Vat 4.80
    Commission -7.00
    Paid to farmer €97.80

    The buyer there appears to have paid the flat rate government rebate...
    What have I missed
    How is it a government vat rebate if the buyer is funding it not the government?

    Also the seller in this example has to pay back that vat out of what they got from the mart
    So 4.8% of what the buyer bids goes to the government

    Now am I missing something here
    I thought the flat rate was a top up paid by the government to compensate for not being vat registered but having to pay vat on many things
    Yet in marts,it seems there is no top up at all?
    Eventually it works it's way through the system and revenue will be giving the money to factory or vat registered farmer


  • #3
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    yosemitesam1 wrote: »
    Eventually it works it's way through the system and revenue will be giving the money to factory or vat registered farmer

    How? You can clain flat rate back if you buy stock,but if you are not doung that,theres a big cohort funding the 'rebate',a majority probably


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