Agricultural flat rate scheme (AFRS) ― joining, leaving and rejoining

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note covers how to join, leave and rejoin the agricultural flat rate scheme (AFRS). The scheme is sometimes also referred to as the famers’ flat rate scheme and the flat rate scheme for farmers.

For an overview of the AFRS more broadly, see the Agricultural flat rate scheme (AFRS) ― overview guidance note.

For the eligibility requirements that must be satisfied for a farmer to join (and remain within) the AFRS, see the Agricultural flat rate scheme (AFRS) ― eligibility guidance note.

For in-depth commentary on the legislation and case law relating to joining the AFRS and cancellation of AFRS certificates, see De Voil Indirect Tax Service V2.192 and V2.196.

Joining the AFRS

Application process

Before applying to join the scheme, a farmer must ensure that their business meets the eligibility criteria set out in Agricultural flat rate scheme (AFRS) ― eligibility.

An application is made using form VAT98.

If the business is not VAT registered at the time of application, it must also complete and

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