agricultural flat rate scheme

agricultural flat rate scheme
An alternative to VAT registration for farmers and other traders involved in agricultural activities. Those on the scheme do not account for VAT or submit returns and consequently cannot reclaim input tax. However, they can charge a flat rate addition to the sale price of qualifying goods or goods and services sold to VAT registered customers even where these sales would be zero-rated for VAT. HM Customs & Revenue Glossary

Financial and business terms. 2012.

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