By Hilary Mare
MEAT Corporation of Namibia (Meatco) has reinstated the payment of 15 percent value added tax (VAT) on all cattle transactions at its Windhoek abattoir in a move the company has deemed necessary owing to the ‘confusion’ surrounding a directive to enforce zero-rated VAT on all cattle transactions by the department of Inland Revenue in April this year.
Meatco had implemented zero-rated VAT on all cattle transactions at its Windhoek abattoir from April 15 following a directive received from the Commissioner: Inland Revenue Department.
“Due to the current confusion and room for various interpretations regarding the directive on VAT, Meatco has decided to reinstate the payment of 15 percent VAT on all cattle transactions at the abattoir until an industry-led process of clarifying the intention of the directive has been finalised.
“All cattle delivered to the abattoir from 15 April onwards and invoices that were subsequently zero-rated will thus be recalculated and sent out to producers within the month and all monies due will be paid at the end of June,” the company said.
Essentially, cattle delivered to Meatco as from 10 June 2018 was invoiced including 15 percent VAT.
The meat company further noted last week that 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.
“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,” Meatco further explained.
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