VATAFRS0210 | Operation of the scheme: Conditions of joining the scheme

To join the scheme, a farmer must satisfy all of the following conditions.

• They must be in business producing goods, or goods and services, but not services alone, which qualify under the scheme.

• If they are currently registered for VAT their registration must be cancelled. VATAFRS0225 gives guidance on the considerations necessary before the VAT registration is cancelled.

• Their annual turnover for farming activity is below £150,000. The annual turnover is calculated on a 12-month period starting from the effective date of certification.

• In the last 3 years they must not have been issued with a civil penalty under VAT Act 1994 Section 60 for dishonestly evading VAT, or have been convicted of any VAT offence, or have had proceedings compounded under CEMA Section 152.