The flat-rate VAT rebate for unregistered farmers is being increased in Budget 2025. The new rate that will apply for 2025 is 5.1%, up from 4.8%.

The rebate is paid on sales made by farmers who do not claim VAT back on the purchases they make.

It means that in 2025, an unregistered farmer who sells €1,000 of livestock, milk or grain would receive €51, up from €48 this year.

For sales worth €10,000, the rebate increases from €480 to €510.

The flat-rate VAT rebate is designed to be budget-neutral overall and will cost €24m over the next year, up €4m from the 2024 expenditure.

Milk sales by farmers who are not registered for VAT will receive a 5.1% rebate in 2025, up from the 4.8% that applies this year.

The higher rebate reflects the higher VAT payments unregistered farmers make on input purchases for machinery, parts, fuel, and animal remedies, due to inflation in the cost of such items. Feed and fertiliser do not have VAT applied.