I am advised by the Revenue Commissioners that the rate of VAT on the supply of insemination services is 13.5%, regardless of the form of the service. The various rates mentioned to by the Deputy appear to refer to the different systems of VAT operating for farmers depending on whether they are registered for VAT or not. A farmer who is registered for VAT must charge VAT on the supply of all farm services, including insemination services, at the VAT rate appropriate to that service; which in this case is 13.5%.
Where a farmer is not registered for VAT he or she does not charge VAT on any farming services being supplied. However, where an unregistered farmer supplies any agricultural produce or service, including insemination, to a VAT-registered person, the farmer may add a flat-rate addition of 5.2% to the amount invoiced to the VAT-registered person. This flat-rate addition is designed to compensate the unregistered farmer for VAT suffered on his or her purchases.