SOUTH AFRICAN REVENUE SERVICE
MEDIA RELEASE NUMBER 2 OF 1998

25 MARCH 1998

VALUE-ADDED TAX: IRREGULARITIES IN RESPECT OF VAT WITHIN THE RED MEAT INDUSTRY

As a result of irregularities in respect of the application of the Value-Added Tax Act, 1991 within the red meat industry, including the obtaining of undue tax benefits by certain players within the industry, it became necessary to formulate interim steps to minimise losses to the fiscus and disruptions in the market as a result thereof.

Owners of abattoirs as well as market agents and auctioneers will be declared as agents of the various farmers, producers and other persons with effect from 1 April 1998 in terms of section 72 of the VAT Act. This will facilitate the retention of VAT levied on the sale of meat and livestock and the payment thereof directly to the local Receivers of Revenue and not to the respective farmers, producers or other persons irrespective of whether such farmers, producers or other persons are registered as vendors for VAT purposes or not.

Complete records of how the payments to Receivers of Revenue were arrived at, should be retained and preserved by the owners of abattoirs, market agents and auctioneers for VAT audits to be conducted by the Receiver of Revenue.

Issued by:

The Commissioner for the South African Revenue Service
P O Box 402
Pretoria
0001



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