Ireland cuts the flat-rate farmer addition from 5% to 4.8% for 2024
This page records one dated change. For the rules in Ireland as they stand today, see the Ireland guide →
- Jurisdiction
- Ireland
- Tax
- VAT
- Change type
- Rate change
- Status
- In force
- Impact
- FYI
- Announced
- 18 December 2023
- Effective
- 1 January 2024
- Authority
- Irish Statute Book (electronic Irish Statute Book, Office of the Attorney General)
- Verified
- Fetched from official source · high confidence
Unregistered flat-rate farmers in Ireland, and the VAT-registered businesses that buy agricultural produce or services from them.
No action required — this flat-rate addition (4.8%) was superseded by Finance Act 2024 s.83 (5.1% from 1 January 2025) and subsequently by Finance Act 2025 s.73 (4.5% from 1 January 2026).
Section 62 of Ireland's Finance (No. 2) Act 2023 (Act No. 39/2023), signed 18 December 2023, changed the flat-rate addition charged by unregistered flat-rate farmers from 5% to 4.8%, with effect from 1 January 2024.
What changed in detail
Section 62 of the Finance (No. 2) Act 2023 (No. 39 of 2023), signed on 18 December 2023, amends section 86(1) of the Value-Added Tax Consolidation Act 2010, with effect from 1 January 2024. It replaces “5 per cent” with “4.8 per cent”.
Section 86(1) sets the flat-rate addition. A farmer who is not registered for VAT adds this percentage to the price when supplying agricultural produce or services to a VAT-registered customer. The addition stands in for the input VAT the farmer cannot reclaim. The customer can then deduct it as if it were VAT.
The rate is set each year in the Finance Act. This change applied to supplies made during calendar year 2024.
What it means
This record is spent and has been superseded. Finance Act 2024, section 83, raised the addition to 5.1% from 1 January 2025 (Ireland raises the flat-rate addition to 5.1%). Finance Act 2025, section 73, then cut it to 4.5% from 1 January 2026, which is the rate in force now (4.5% from 2026). The Finance (No. 2) Bill 2026 proposes 4.8% again from 1 January 2027 (the 2027 proposal).
Because the rate changes almost every January, a purchase invoice from a flat-rate farmer should carry the addition in force on its date. For 2024 that rate was 4.8%.
Proof
62. Section 86 of the Principal Act is amended, in subsection (1), with effect from 1 January 2024, by the substitution of “4.8 per cent” for “5 per cent”.
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