29March2024

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Horticultural Retailers VAT Obligations - Revenue

 

1 Introduction
All retailers of horticultural products, including garden centres and flat-rate farmers whose annual retail sales of horticultural products and other goods exceed or are likely to exceed the VAT registration threshold €75,000 are obliged to register and account for VAT. 'Horticultural products' for this purpose means non-food products of a type listed at paragraph 2. 'Other goods' means goods other than agricultural produce. 

2 Rates
Plants, trees, bulbs, roots and seeds used for growing food are taxable at the zero rate. The reduced rate applies to: 

  • live plants, including instant lawn turf
  • live trees
  • live shrubs
  • bulbs, roots and the like
  • seeds
  • cut flowers
  • ornamental foliage.

Artificial flowers, dried flowers and dried foliage are taxable at the standard rate. Cut trees (for example, Christmas trees), are also liable at the standard rate.

The supply of pots is subject to VAT at the standard rate. The supply of potted plants is normally taxable at the reduced rate. However, where the value of the pot is 20% or greater than the tax exclusive price of the plant and the pot, its supply becomes taxable at the standard rate.

3 Obligation to Register

3.1 Farmers and garden centres supplying horticultural products to the general public must register and account for VAT on all their business activities subject to the VAT registration threshold of €75,000.

3.2 A retailer of horticultural products cannot avoid registering for VAT by splitting his/her business into a number of separate smaller units, each selling less than the annual registration limit. The various units will be grouped as a single business for VAT purposes.

3.3 In addition, where a person supplies a combination of retail horticultural produce and agricultural services, the registration threshold is €37,500. This is the normal VAT registration threshold which applies where a person supplies both goods and services.

3.4 Businesses such as florists benefit from the reduced VAT rate on the horticultural produce of a type listed at paragraph 2.

Further information

Enquiries regarding any issue contained in this Information Leaflet should be addressed to the Revenue District responsible for the taxpayer's affairs. Contact details for all Revenue Districts are available on the revenue website at: Contact Details

VAT Interpretation Branch,
Indirect Taxes Division,
Stamping Building,
Dublin Castle.

Source: Revenue - Horticultural Retailers VAT Obligations - Revenue