Budget concerns for non-Vat registered farmers

ICOS has raised concerns regarding the reduction of the flat-rate farmers' Vat top-up from 5.1% to 4.5% will create an imbalance for non-Vat registered farmers

The flat-rate farmers Vat scheme is designed to compensate for non-Vat registered farmers for the Vat they receive on selling farm produce and buying farm inputs.

Concerns have been raised regarding the proposal to reduce the flat-rate farmers' Vat top-up from 5.1% to 4.5%.

The reduction takes effect from January 1, 2026, and is currently included in the upcoming Finance Bill submitted by the Department of Finance.