Skip to content
logo Knowledgebase

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

Created on  | Last modified on 

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 offers general guidance only. While accurate at the time of publication, it may not suit your specific needs. We make no express or implied warranties. For tailored advice, consult a professional. For VAT, customs, or duties queries, contact Revenue. We accept no liability for any loss from using this content. VAT or tax codes shown reflect default software settings and may differ in your setup.