VAT Refunds and Rural Payments and their treatment in VAT

VAT Refunds and Rural Payments and their...

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Hi Everybody,

I have just recently started to complete VAT returns for my husbands farm.

Do I include payments from the Rural Payments Agency in my VAT return?

As most of the Sales made are exempt from VAT and they would generally receive a refund from HMRC does that get excluded from the next return?

Any help much appreciated!

Kind regards,

Lis

Replies (4)

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By anniem
17th Apr 2012 17:38

Yes and Yes

Hi Lis

Your RPA payment goes through as Income with zero VAT.

The last refund you received from HMRC is outside the scope of VAT so can be excluded from your calculations.

Most farms are the same as yours and receive refunds from HMRC for VAT returns.

Anna

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By waterhall
23rd Jan 2020 11:34

Hi Lis
Would you know the answer to this... Does a payment received from Countryside Stewardship for capital works completed on the farm need to be entered in box 6 sales of the vat return?
Thanks

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paddle steamer
By DJKL
23rd Jan 2020 11:46

"As most of the Sales made are exempt from VAT"

Just to be clear they are more likely to be zero rated rather than exempt- there is a difference despite both having no vat attaching.

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Replying to DJKL:
RedFive
By RedFive
23rd Jan 2020 12:14

I agree. The couple of farmers I look after I put the RPA as 0% so it appears on the return as opposed to 'no vat' which would not, though depends on your software.

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