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HMRC internal manual

VAT Agricultural Flat Rate Scheme

HM Revenue & Customs
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Operation of the scheme: approval of applications

Farmers who wish to apply must complete the application form VAT 98 and return it to Grimsby Registration Unit for consideration. The procedures to follow for the issue and receipt of the VAT 98 are explained in VATAFRS1400.

  • The points you will need to consider, when you receive a completed application form, are described in VATAFRS1500; and a flow chart outlining the certification procedure is at VATAFRS2600.
  • If you are satisfied that a farmer is entitled to join the scheme and all conditions are met, follow guidance in VATAFRS1800.
  • If you are not satisfied and intend to refuse the application follow the guidance in VATAFRS1700.

Note for managers: Once a certificate has been issued, a farmer does not submit any returns, and in the normal course of events will not be visited. It is therefore very important that the eligibility of farmers to join the scheme is considered critically when applications are being scrutinised. The responsibility for approving applications is a matter for local management to decide; but the allocation of this task, and the development of suitable management checks, must provide assurance that all aspects of eligibility are properly considered before applications are approved.