Broadly, the VAT position for those providing stabling, grazing or livery is as follows: The letting of a stable alone is exempt from VAT, subject to the ‘option to tax’. The supply of ‘keep’ (or care or livery services) including stabling and feed is one standard-rated supply with no apportionment.
Is there VAT on livery fees?
If you are providing full or part livery services such as mucking out, feeding, grooming and general care, this will be standard rated for VAT purposes. If you are providing grass livery this is treated as zero-rated and you can therefore reclaim VAT on costs relating to this service without charging your client VAT.
Can farmers reclaim VAT on fencing?
VAT is recoverable on the construction, extension, alteration or reconstruction of a building or structure which is designed for use solely or mainly for the purposes of a farming business, fencing, drainage or reclamation of any land for use for the purposes of a farming business, or construction, erection or …
Should a farmer register for VAT?
No farmer or farming company is obliged to register for VAT, but some do and many wonder if they should. Every farmer incurs quite a substantial annual VAT cost on farm inputs and services with the exception of feedstuffs, fertilisers, seeds and oral animal medicines.
Is horse feed VAT exempt?
Animal feed is zero rated for VAT provided it is not packaged as pet food, therefore hay, cereals and other feeds do not carry VAT if you sell them to outside clients. However, if they are provided as part of your service, they are standard rated for VAT.
Is VAT payable on grazing?
A supply of grazing rights is zero rated as animal feeding stuffs. 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 animal feed?
Usually, the right to graze is a zero-rated supply of ‘animal feeding stuffs’. However, HMRC argue that the supply of animal feeding stuffs as part of the service of keeping animals is not a composite supply and VAT arises on the total price at the standard rate (Notice 701/15/2011, para. 9.6, 10.2 and 10.3).
Can I claim VAT on fencing?
If you are registered for VAT you might undertake a mix of standard rate and zero rated work. Zero rated services can include, for example, installing walls and fences for newly built houses. Most other types of fencing work are likely to be standard rated for VAT.
Are farmers exempt from VAT?
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.
What happens if you own a horse in a livery yard?
Horses on farms or in stables and livery yards are protected by the Animal Welfare Act. If you own or are responsible for a horse, you have a duty to look after its basic welfare by: You can get an unlimited fine or be sent to prison for up to 6 months if you are cruel to an animal or do not care for it properly.
Where can I find health and safety regulations for livery yards?
Health and safety standards for livery yards are set out by the Chartered Institute for Environmental Health ( CIEH ). Download ‘Health and safety in horse riding establishments and livery yards’ from the CIEH website (PDF, 2.6MB) You can make a planning application online.
Do you have to pay council tax on stables?
You usually need to pay business rates on your stables, unless you use your horses for farming. You may pay Council Tax instead if your stables are in your garden. Contact VOA to check if you’re not sure which you should pay.
