Practice Notes > Department of Finance Directorate

25 September 1991

Department of Finance Directorate

(Section 78 of the Value-Added Tax Act, 1991 (The Act))

•	that where any person is, on the day before the commencement date of value-added tax (VAT) registered as a vendor under the Sales Tax Act,

•	at the end of that day has in his possession goods, which includes livestock, which he has not disposed of, or which he has disposed of under as sale but for which he has not received full payment, and in either case sales tax was not borne by him on acquisition of such goods, and

•	on the commencement date he is not a vendor for value-added tax purposes

he is deemed to have applied such goods on that day to a use or consumption and must therefore pay sales tax on the value of such goods.

The purpose of the provision is to place any person who is registered as a vendor for sales tax purposes and who does not register for VAT, in the same position as any other person who does not register for VAT, namely, both will have paid tax on their purchases.

To calculate any sales tax which is payable as a result of this, it is necessary to place a value on the goods on hand at the end of the day before implementation date. The value may be determined on the following basis:

In respect of all livestock that has been purchased, the lower of the cost or market value of such livestock must be determined.

In respect of all progeny, the following values must be applied:

Classification		Value R
Cattle
	Bulls	50
	Oxen	40
	Cows	40
Tollies and heifers
	Two to three years	30
	One to two years	14
Calves		4
Sheep
	Whethers	6
	Rams	6
	Ewes	6
	Weaned lambs	2
Goats
	Fully grown	4
	Weaned kids	2
Horses
	Stallions, over 4 years	40
	Mares, over 4 years	30
	Geldings, over 3 years	30
	Colts and fillies, 3 years	10
	Colts and fillies, 2 years	8
	Colts and fillies, 1 year	6
	Foals, under 1 year	2
Donkeys
	Jacks, over 3 years	4
	Jacks, under 3 years	2
	Jennies, over 3 years	4
	Jennies, under 3 years	2
Mules
	Four years and over	30
	Three years	20
	Two years	14
	One year	6
Ostriches, fully grown		6
Pigs
	Over 6 months	12
	Under 6 months (weaned)	6
Poultry, over 9 months		1
Chinchillas, all ages		1

For the purposes of this section standing crops are considered to have no value for purposes.

These values so determined are to be included in the last Sales Tax return which is submitted and such sales tax payable in respect of the taxable value of such goods shall be payable at the rate of 10 per cent prior to 30 December 1991.

Value-Added Tax Act, 1991 (Act No. 89 of 1991)

Practice Notes

Department of Finance Directorate

1. Valuation of Livestock