Farmers will benefit when they supply locally produced or manufactured agricultural products that are exempted from VAT, such as poultry, eggs, fish, vegetables, fruits, flowers, pigs, goats, cows and their related products but does NOT include produce sold by a retailer or supermarket.( See paragraph 14 of the Third Schedule of the VAT Act for further details).
In addition, farmers must be aware that the supply of various Agricultural and Fishing inputs are also exempted from VAT.
- seeds, seedlings, cuttings and fertilizers, pesticides, insecticides(including those for household use for e.g. bop, baygon etc), and other treatments
- herbicides, fungicides and nematicides
- animal feed other than food for domesticated animals generally held as pets
- ventilated boxes and packing films specifically designed for use in transporting unprocessed agriculture products;
- plant propagation bags;
- fiber- glass and wooden boats, anchors, G.P.S, compass, V.H.F radio etc
- Equipment and machinery specifically designed for agricultural and horticultural use
(See paragraphs 26 and 27 of Third Schedule of the VAT Act for further details).