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Sage 200 - Farmers and the Flat-rate Scheme - Ireland

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Summary

On 1st January 2022, the Irish Government reduced the rate of VAT Flat-rate compensation percentage for Farmers to 5.5% - Further changes to the Flat-Rate compensation percentage for Farmers are also seen below.

Description

What's changing?

The Flat-rate Scheme is a special scheme for farmers who are not registered, or required to register, for Value-Added Tax (VAT). These farmers are commonly referred to as flat-rate farmers.

The scheme is designed to compensate flat-rate farmers for the VAT they incur on farming costs without having to register. Flat-rate farmers are entitled to receive an amount known as the flat-rate addition on their supplies of agricultural activities.

  • On 1st January 2022,  5.5%.
  • On Sunday 1st January 2023 this rate changed to 5%.
  • From 1st January 2024, it will be further reduced to 4.8%.
  • From 1st January 2025, it will be increased to 5.1%

Further information on this scheme can be found on the Irish Revenue website. Current VAT Rates in Ireland can be found here.

Resolution

You can create a new VAT code in your Sage 200 software to represent the equired % rate, which makes it easier to identify transactions you are entering for reconciliation and analysis purposes.

Create new tax codes

You can create new tax codes for transactions that qualify for the reduced % VAT rate as follows.

 TIP: Use the appropriate rate based on the date of transaction - the rates can be found above

Sage 200 Standard / Education

  1. Open Settings > Organisational and Financial > VAT Rates.
  2. Click Add.
  3. Enter the following details:

    Code An available VAT Code number
    Name This can be anything which is meaningful to your business
    VAT Return This must be selected
    % Set to required %
    Input Code Optional depending on your business setup
    Output Code Optional depending on your business setup
  4. Click OK.

Sage 200 Professional

  1. Open Accounting System Manager > Settings > VAT Rates.
  2. Click Add.
  3. Enter the following details:

    Code An available VAT Code number
    Name This can be anything which is meaningful to your business
    VAT Return This must be selected
    % Set to required %
    Input code Optional depending on your business setup
    Output Code Optional depending on your business setup
  4. Click OK.

This article provides general rather than specific guidance to assist all of our customers, including both in the United Kingdom and Republic of Ireland. We always do our best to make sure that the information is correct but as it's general guidance, no guarantees can be made concerning its suitability for your particular needs. The information is valid for our general customer base at the time of publishing and is provided without any warranty of any kind, express or implied. You should take professional advice if you require specific guidance on your individual circumstances, for example to ensure that the results obtained from using our software comply with statutory or regulatory requirements. For VAT, customs and excise and duties enquiries you should contact The Revenue. In no event will we be liable to you for any direct, indirect, consequential or incidental loss or damage arising out of or in connection with your use of the information provided.
The VAT or tax codes used in this article are based on the default or recommended codes set up in the software. These may be different in your software.