Sole Trader VAT registration and ancillary trade

[datacopy]

May a Vat registered sole trader (Trade A) who also has a small farm (Trade B) claim a refund of VAT paid on farm expenses on the basis that he is Vat registered (in Trade A). I understand that if a soletrader is VAT registered for one trade / business, that person is (effectively) VAT registered for all trades that he / she carries on? Is this correct? ( The sole trader in this case has not elected to register as a Vat registered farmer)

One additional point please which may be relevant- the farming in question is small scale - low stock numbers, very little stock sales, income mostly derives from subsidies. Farm expenditure is mostly maintenance and small capital improvements. Farm normally breaks even

Any advice greatly appreciated

Thank you

 

[T McGibney]

May a Vat registered sole trader (Trade A) who also has a small farm (Trade B) claim a refund of VAT paid on farm expenses on the basis that he is Vat registered (in Trade A).

Yes, they can, but I would put it a different way: A VAT-registered sole trader with a separate farm trade must account for VAT in respect of that trade. This is not a benefit to the individual, and will cost them financially, mainly through having to account for VAT on livestock sales. If you're in this position, I recommend that you obtain professional advice on how you may avoid this.

 

[datacopy]

Thanks T Mc Gibney

But if the farming in question is small scale - low stock numbers (sheep) resulting in very low stock sales, it probably would not cost financially?

Thanks again