The flat-rate scheme for agriculture (AFRS) provides farmers engaged in qualifying activities with an alternative to VAT registration.
Background to the AFRS
As part of the programme for VAT harmonisation within the member states, farmers can apply to be taken outside the scope of VAT, provided certain conditions are met (VATA 1994, s. 54).
The rules are in the Value Added Tax Regulations 1995 (SI 1995/2518), Pt. XXIV, Value Added Tax (Flat-rate Scheme for Farmers) (Designated Activities) Order 1992 (SI 1992/3220) and Value Added Tax (Flat-rate Scheme for Farmers) (Percentage Addition) Order 1992 (SI 1992/3221).