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When farmers sell produce through farmers� groups and co-operatives, the goods - for example grain - are combined with the produce of other farmers. The buyer then has no way of knowing whether a flat rate farmer has supplied any of the goods.

In these cases, the person buying the goods should pay the farmers� group only the price agreed for the agricultural produce, without the flat rate addition. The farmers� group should instead pay the 4% addition to flat rate farmers, when the proceeds of the sale are shared out. The farmers� group can then reclaim the amount charged as though it were input tax, when the group submits its normal VAT return.