Guest Contributor | Sep 14, 2018 | 0
Meatco reinstates 15% VAT on all cattle transactions at the abattoir
Following many different reactions and interpretations after the implementation of the directive of zero-rated tax on all cattle transactions with Meatco’s Windhoek abattoir, a meeting with the Commissioner was set up to shed more light on the interpretation of the Act.
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..
At the recent meeting, the Commissioner informed Meatco that he has received a similar request from the industry to shed more light on the directive issued.
However, due to the current confusion and room for various interpretations, Meatco has decided to re-instate the payment of 15% VAT on all cattle transactions at the abattoir until the industry led process of clarifying the intention of the directive has been finalised.
“All cattle delivered to the abattoir from 15 April 2018 onwards and invoices subsequently that have been zero-rated will thus be re-calculated and send out to producers within the month. All monies due will be paid at the end of June 2018. Cattle delivered to Meatco from 10 June 2018 will be invoiced including 15% VAT going forward,” the meatco statement read.
Furthermore Meatco said the practice of self-invoicing cattle transactions will be continued, but a formal request to continue the practice will be motivated to the Commissioner for approval.