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The livestock trading scheme and VAT
The supply of livestock by traders is in principle a VAT-taxed supply. An exception applies when the livestock trade scheme is applied and a livestock trader is not liable for VAT on the sale of livestock. The downside of this is that the cattle dealer is not entitled to deduct VAT.
Request livestock trading scheme
If a cattle trader wants to make use of the cattle trading scheme, he must submit a written request to the tax authorities. If the request is met, the cattle trader does not have to issue invoices to his customers for his deliveries of cattle.
When he does issue invoices, absolutely no VAT may be stated on them. The application of the livestock trading scheme is valid for at least five years. After these 5 years, the entrepreneur can terminate the livestock trading scheme.
Read more on the acconâ– avm website.
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Do you have questions about the livestock trading scheme? Or would you like advice on using the livestock trading scheme versus opting for VAT? We are happy to serve you.
You can also download the full article as download pdf file.
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