When buying grass seed in the UK, you might have noticed something unusual at checkout: no VAT added. That’s because grass seed is officially zero-rated for VAT, thanks to its close link to agriculture and animal feed.
This zero-rating makes grass seed more affordable for everyone — from homeowners to groundskeepers to farmers. But why exactly does HMRC apply this rule? Here’s a clear, practical explanation.
The Legal Basis: HMRC VAT Food Manual (VFOOD3540)
The legal foundation comes directly from HMRC’s VAT Food Manual (VFOOD3540).
“It is clear from the law that relief from tax should properly be restricted to grass seed used for agricultural purposes as a feed crop. There is no legal basis for relieving grass seed used for amenity purposes. However, on the basis of the law as it stands, all grass seed has been zero-rated because of the extensive use of grass as animal feed.”
In other words:
- Grass seed used to grow animal feed qualifies for VAT relief.
- Because most grass seed mixtures can be used for both agriculture and amenity, it’s not practical to separate them.
- HMRC applies zero-rating across all grass seed used for sowing, no matter how it’s ultimately used.
Read the full HMRC guidance here
What “Zero-Rated VAT” Actually Means
It’s important to understand the difference between zero-rated and VAT exempt:
- Zero-rated: VAT applies at 0%. No VAT is charged to the customer, but suppliers can reclaim input VAT.
- Exempt: VAT is not charged, but suppliers usually can’t reclaim input VAT.
Grass seed falls into the zero-rated category, meaning:
- You don’t pay VAT as a customer.
- The supplier can still reclaim VAT on their business costs.
- The transaction remains clearly within the VAT system.
✅ Result: a fairer, simpler system that keeps seed prices lower for everyone.
Why HMRC Applies Zero-Rating Broadly
Most grass seed is multi-purpose — the same seed might be used for a dairy pasture, a rugby pitch, or a garden lawn.
HMRC recognises that:
- Agricultural ryegrass can be used for grazing or amenity.
- Amenity fescue blends may still end up grazed in mixed land use.
- It would be too complex to track the “intended use” of every sale.
By zero-rating all grass seed used for sowing, HMRC simplifies VAT administration and ensures a consistent approach.
The Exceptions: When VAT May Apply
While most grass seed is zero-rated, not every turf product qualifies. HMRC highlights a few important exceptions:
- Pre-germinated grass seed is standard-rated (usually used for sports turf).
- Turf and other non-seed lawn products are standard-rated.
- Seed that contains extra ingredients, like Wildflowers, or fertiliser coatings, may need a different VAT
