Meatco to reinstate 15% VAT on cattle procured at Windhoek abattoir
The Meat Corporation of Namibia (Meatco) is to reinstate 15 % Value Added Tax (VAT) on all cattle transactions at the Windhoek abattoir until an industry led process of clarifying the intention of the directive has been finalised.
This is due to the current confusion and room for various interpretations regarding the directive on VAT, manager of corporate affairs, Rosa Thobias has told The Villager.
“Cattle deliveries as from 10th June have been invoiced including 15% VAT going forward. Because of many interpretations that the commissioner of Inland Revenue received. This must be now discussed by the various stake holders,” she said.
She added that 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.
Thobias also said that all cattle delivered to the abattoir and invoices that were subsequently zero –rated will thus be recalculated and sent out to producers witting the month and all monies due will be paid at the end of June.
“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,” she said.
She added that during the meeting the commissioner informed Meatco that he had received similar requests from the industry to shed more light on the directive issue.
However, Thobias noted that challenges experienced by the company remains low throughout as most farmers and producers are recovering from drought and are rebuilding their herds.