Meatco reinstates 15% VAT on cattle procured at the Windhoek abattoir
15 Jun 2018
Due to the current confusion and room for various interpretations regarding the directive on VAT, Meatco has decided to reinstate the payment of 15% VAT on all cattle transactions at the abattoir until an industry-led process of clarifying the intention of the directive has been finalized.
All cattle delivered to the abattoir from 15 April onwards and invoices that were subsequently zero-rated will thus be recalculated and send out to producers within the month and all monies due will be paid at the end of June.
Cattle delivered to Meatco from 10 June 2018 will be invoiced including 15% VAT going forward.
The practice of self-invoicing cattle transactions will be continued by Meatco, but a formal request to continue the practice will be motivated to the Commissioner for approval.
Meatco implemented zero-rated Vat on all cattle transactions with the Windhoek abattoir from 15 April following a directive received from the Commissioner: Inland Revenue Department.
But Meatco received many different reactions and interpretations following the implementation of the directive, which prompted management to set up a meeting with the Commissioner for him to shed more light on the interpretation of the Act and directive issued in regard of zero-rated VAT and the practice of self-invoicing.
During the meeting, the Commissioner informed Meatco that he has received similar requests from the industry to shed more light on the directive issued.