How Much Is Vat In Namibia

What is VAT?

A value-added tax, known in some countries as a goods and services tax, is a type of tax that is assessed incrementally. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer.

How Much Is Vat In Namibia?

VAT is levied at the standard rate of 15% on the supply of most goods and services and on the importation of goods. It is mandatory for a person who carries on a business with an annual taxable turnover above N$500,000 to apply for VAT registration.

Frequently Asked Questions

What is VAT exempt in Namibia?

Some transactions are taxed at a rate of 15% or 0% while other transactions are exempt from VAT. A taxable activity means any activity that is carried on continuously or regularly in Namibia that involves the supply of goods or services for consideration.

How does import VAT work in Namibia?

Import VAT is applicable and payable (at an effective rate of 16.5%) on all goods (movable items) imported into Namibia. Services provided from outside Namibia are only subject to 15% if the recipient of the service is using or consuming the service to make exempt supplies.

How much is customs fee in Namibia?

Things To Know When Shipping To Namibia

The import tax charged on a shipment will be 15% on the full value of your items.

How do you calculate VAT?

Take the gross amount of any sum (items you sell or buy) – that is, the total including any VAT – and divide it by 117.5, if the VAT rate is 17.5 per cent. (If the rate is different, add 100 to the VAT percentage rate and divide by that number.)

Do we pay VAT on petrol?

A fairly wide range of basic foodstuffs together with diesel, petrol and illuminating paraffin are zero-rated as distinct from exempt. This means that the customer pays no VAT, but the supplier can, if VAT registered, claim input VAT because they are making VATable supplies (albeit at a rate of zero).

Is car allowance taxable in Namibia?

Travel, entertainment, and motor vehicle expenses are potentially deductible, but the onus is on the employee to prove they were incurred in the production of taxable income. Where allowances are provided by the employer, this onus is more readily discharged, but the deduction cannot normally exceed the allowance.

Does salary have VAT?

Salaries, wages and allowances don’t contain VAT, so you can’t claim an input tax deduction when you pay your employees.

What is the difference between VAT and import VAT?

What is different is that VAT on imported goods is paid directly to HMRC, while domestic VAT is normally paid to a supplier of goods. After an import VAT payment is made by a UK VAT-registered trader, an HMRC form C79 showing the VAT paid will be electronically produced and sent to the business address.

How much turnover do you need to register VAT?

It is mandatory for a person to register for VAT if the taxable supplies made or to be made is, in excess of R1 million in any consecutive twelve month period. A person may also choose to register voluntarily if the taxable supplies made, in the past period of twelve months, exceeded R50 000.

Do you charge VAT on exports to Namibia?

VAT on exports to Namibia. Namibian VAT is payable upon importation into Namibia at either 15% or 30%, depending on the nature of the goods.

An application for VAT registration should be accompanied by:

• Proof of Banking Details.
• Fitness Certificate.
• Founding Statement.
• Indication of expected turn over for 12 months.

How do you calculate cost price?

Cost price formula when gain (profit) percentage and selling price is given as, Cost price formula = {100/(100 + Profit%)} × SP.

Is rental income taxable in Namibia?

Income received from any agreement for the usage of the property is taxable, provided that such a property is situated in Namibia. Money paid to terminate the rental agreement is also taxable and should be included in the income for the year.

Is housing allowance taxable in Namibia?

Housing allowance is taxable, however 1/3 is exempt if the employer has an approved housing scheme; 2. The use of a company car is taxable at 1.5% if all costs are paid by the employer and 1.4% if you as an employee pays the fuel cost.

Is pension taxable in Namibia?

Pension and RA funds – The total lump sum is tax-free, but annuities or pensions paid are taxable at the marginal rate of the member. Provident funds – One-third of the total benefit is exempt and the remainder is taxed at the marginal rate of the member.

Is VAT charged on Labour?

Employment businesses who are deemed to be supplying staff charge VAT on their supply as usual. However, if you supply your services as a labour only contractor then the VAT reverse charge will apply.

Is there VAT on rent?

If the landlord has ‘opted to tax’ for VAT purposes, then the rental payments will be subject to VAT; otherwise, rental payments are exempt from VAT. If your business is VAT-registered, your costs will not normally be any higher whether the landlord has opted to tax or not.

Does DHL charge VAT?

Why doesn’t DHL include Duty and VAT charges in its tariff? These charges are not included in our tariff because the Customs authorities in the destination country determine whether any duties and taxes are applicable when the shipment arrives.