Most farm produce is zero-rated, so you can claim the VAT on equipment..... however....

There is a plan to do away with zero-rating altogether and stick with exempt. Treasury argues that zero-rating has not achieved the goals intended. Producers are not passing the savings to consumers. Well; the big problem is that KRA takes an average of 24 months to pay pay back the claimed refunds...by which time the bennefit is eaten away by interest rates (to cover the cash flow shortage) and opportunity costs (missing out business because you don't have the cash to finance them)

This makes interesting reading: http://www.nation.co.ke/...n/-/8s2h71z/-/index.html

Not yet registered for VAT as you can register and claim inputs for earlier trading, but need to know if vegetabble farming is zero or exempt, any ideas??