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Unregistered farmer

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  • 14-03-2022 10:35pm
    #1
    leinster93
    Registered Users Posts: 306 ✭✭


    Mods feel free to move this if not in the right place.

    I have a small plantation and will clearfell soon. I am not vat registered. I have a full time job, paying prsi and USC.

    Am I right in applying the flat rate 5.4% addition when selling the timber to a vat registered trader.

    Post edited by leinster93 on


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    #2
    gt12
    Registered Users Posts: 32 ✭gt12


    Hi,

    Nor sure if you are already sorted by now. Anyway, sharing what I know from IFAC accountancy website:

    https://www.ifac.ie/news-insights/news/forestry-farming-the-tax-considerations

    "

    VAT

    For VAT purposes, forestry is deemed to be a farming activity. If you are not registered for VAT, you will need to apply the 5.4 percent VAT addition when selling timber to a VAT registered trader. This should be kept in mind when agreeing a price with the timber merchant. If you are not VAT-registered, you can claim the 5.4 percent flat-rate refund on certain fixed capital costs, such as fencing and roadways (but not planting). Claims are submitted to Revenue via the VAT 58 form.

    If you are VAT-registered, you must charge VAT at 23 percent on timber sales apart from fire wood, which is chargeable at 13.5 percent.

    "

    Guess this would answer your question, If needed try calling ifac advisor to help.



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