The position on ancillary grass keep for horses follows the position on general animal grazing, … 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 there VAT on grazing land?
Farmers will be used to renting fields and farm buildings without VAT being charged – this is because the supply of land is usually exempt from VAT. Most farms can recover the input VAT on their rents via the next VAT Return because their business is making zero rated or standard rated supplies. …
Why is there no VAT on grass seed?
Most grass seed is zero-rated because of the extensive use of grass as animal feed. … But pre-germinated grass seed and turf are not used for the propagation of animal feed and are therefore standard-rated. For supplies of hay, straw and grazing rights see Animals and animal food (VAT Notice 701/15).
Is VAT payable on agricultural land?
Although VAT applies to farms, generally VAT does not cause an issue as most goods sold are treated as zero-rated for VAT purposes. Accordingly, VAT does not need to be charged by most farmers on the sale of their livestock or crops, but VAT incurred on related expenses can be recovered.
Is landscaping VAT exempt?
If you are building a new house you could possibly save the VAT on some of your landscaping. New build houses are exempt from VAT and this exemption could apply to some parts of the landscaping if it is incorporated in to the build. The VAT exemption applies to people who are building a new house on an existing site.
Do you have to pay VAT on land purchases?
VAT and property
Types of supply: Dealings in land can be standard rated, zero rated, exempt or even outside the scope of VAT depending on their nature. Exempt supplies – general: Supplies of interests in, rights over or licences to occupy commercial property are in general exempt.
Are farms VAT registered?
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.
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.
Are potatoes zero-rated for VAT?
Potatoes supplied under Part B
These are potatoes supplied as foodstuffs (that is, vegetables) under Item 12 of paragraph 1 of Part B. The supply of these potatoes is zero-rated under section 11(1)(j).
Is grass seed zero-rated?
Grass seedIt is clear from the law that relief from tax should properly be restricted to grass seed used for agricultural purposes as a feed crop. … However, on the basis of the law as it stands, all grass seed has been zero-rated because of the extensive use of grass as animal feed.
Do you pay rates on agricultural land?
You may not have to pay business rates on: agricultural land and buildings, including fish farms. buildings used for training or welfare of disabled people. buildings registered for public religious worship or church halls.
Is buying agricultural land tax deductible?
Agricultural land in Rural Area in India is not considered a capital asset. Therefore any gains from its sale are not taxable under the head Capital Gains. … Under Section 10(37) of the Income Tax Act, Capital Gains on compensation received on compulsory acquisition of urban agricultural land is exempt from tax.
Can you claim back VAT on land purchases?
Re: vat reclaim on land purchase
First, the basics of VAT – if you charge VAT you can reclaim VAT. if you don;t charge VAT you can’t reclaim it.
What building work is VAT exempt?
The builder may not have to charge VAT on some types of work if it meets certain conditions, including building a new house or flat or carrying out building and related work for disabled people in their home. … It’s self-contained – there aren’t any internal doors or connections to other houses or flats.
Do you pay VAT on renovations?
VAT on new builds is 0%. VAT on home improvements is levied at a standard rate of 20%. But did you know that in some cases, home improvement products and services can be completely VAT exempt or qualify for a reduced rate of VAT. …
Can a builder claim VAT back on materials?
Examples of the materials you can claim VAT back under the DIY Housebuilders’ scheme: All materials normally incorporated in a new dwelling — all construction materials, for example, concrete, blocks, bricks, insulation, sand, cement, plaster, timber, roofing, stairs, windows, guttering, doors, paint, etc.