How To Calculate Import VAT In Namibia

What is Import VAT?

Import VAT is a tax paid on goods purchased from another country outside the European Union (EU). 

How To Calculate Import VAT In Namibia

To calculate the VAT on your shipment, add up the goods value, freight costs, insurance, import duty and any additional costs. Then multiply the total by the destination country’s applicable VAT rate. The result is the amount of VAT you’ll need to pay customs for your shipment. Customs duties are also applicable on the importation of goods from countries other than South Africa, Lesotho and Swaziland (“SACU”)

The amount paid to the service provider must be used to calculate the VAT payable on the imported service. The standard rate of 15% must be applied to determine the amount payable

Frequently Asked Questions

How does import VAT work in Namibia?

VAT is payable on all imports for home consumption in Namibia, subject to certain exemptions (e.g. in terms of a technical assistance agreement, donations to the state, goods of which the local supply is zero-rated). Import VAT is payable on the greater of the free on board (FOB) value plus 10% or the market value

What is import VAT 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.

Is there VAT on import duty in Namibia?

VAT is charged on goods imported from outside the EU at the same rate as if you bought the goods in the UK. It is also worth remembering that there will be VAT to pay on any import duty. 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

How are customs fees calculated in Namibia?

To calculate the estimated duty fee for a shipment where the fee is determined by percentage value, simply multiply the total value of the goods by the percentage that applies to their HTS code, and then divide this figure by 100.

How does import VAT work in Namibia?

Import VAT is a tax paid on goods purchased from another country outside the European Union (EU). Import VAT is applied to all purchased goods worth more than N$150; all gifts worth more than N$400; and all goods, regardless of value

Can you avoid import tax in Namibia?

If there is a trade agreement with the country you’re importing from, you may be able to pay less duty or no duty on the goods (known as a ‘preferential rate’). You may also be able to delay or reduce the amount of duty you pay based on what the goods are and what you plan to do with them

What items are exempt from import duty?

You can claim goods worth up N$800 without paying any duty and taxes. You must have the goods with you when you enter Canada. Although you can include some tobacco products and alcohol, a partial exemption may apply to cigarettes, tobacco products and manufactured tobacco.

Who pays the import duty in Namibia?

In practice, import duty is levied when imported goods first enter the country. For example, in Namibia, when a shipment of goods reaches the border, the owner, purchaser or a Customs broker (the importer of record) must file entry documents at the port of entry and pay the estimated duties to Customs.

How do I claim VAT on imported goods in Namibia?

The documentary evidence required to claim VAT on imports includes the bill of entry or other document prescribed in terms of the Customs and Excise Act, together with a receipt proving that the necessary tax was paid in respect of the said import.

Do I have to pay DHL import duty in Namibia?

You may be charged customs duties and taxes for something purchased online because: To ensure the DHL courier can deliver your goods in shortest possible time after entering the UK, DHL pays the any duties and taxes that are due on the goods to HMRC on your behalf

Do I have to pay import duty on gifts in Namibia?

The Government has exempted gifts items received from foreign country to persons residing in India from the whole of custom duty under Foreign Trade Act. In the present scenario, import of goods up to the value of Rs. 5,000/- is allowed as gift, duty free.

How is customs duty calculated in Namibia?

The Canadian dollar value is obtained by multiplying the value of the goods indicated on the commercial invoice by the exchange rate at the time of the shipping. The customs duty rate is calculated by your broker based on the HS number and various other factors 

Is it better to be VAT registered?

So, if your turnover exceeds the VAT threshold of £85,000 then you must register for VAT. Registering for VAT can ensure that you are ready to grow as a business – creating a positive impression about your intent – and allows you to reclaim VAT on purchases you make.

Is interest paid Vatable in Namibia?

Interest. A WHT of 10%, calculated on the gross amount of interest, is payable on interest accruing to any person, other than a Namibian company, from a registered banking institution or unit trust scheme in Namibia. The tax withheld is a final tax, and the financial institution is responsible to withhold the tax.

How does Namibia tax work?

A sliding scale is used to determine the tax rates applicable to individuals. For all years of assessment effective 1st March 2009, the minimum rate is 0% and the maximum rate applied is 37%. The Namibian tax year commences on 1 March to the last day of February that subsequent year.

What is the purpose of VAT?

The Value Added Tax, or VAT, in the European Union is a general, broadly based consumption tax assessed on the value added to goods and services. It applies more or less to all goods and services that are bought and sold for use or consumption in the European Union.

How do we 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.) Multiply the result from Step 1 by 100 to get the pre-VAT total.

How do I calculate VAT back?

To calculate VAT having the gross amount you should divide the gross amount by 1 + VAT percentage. (i.e if it is 20%, then you should divide by 1.20), then subtract the gross amount.

How do you add VAT to a price?

If you want to add VAT to the price, you just need to divide the price by 100 and then multiply by (100 + VAT rate). That’s all, you got the price including VAT – Gross price.

Are donations tax deductible in Namibia?

A specific deduction for donations is allowed, provided that it is made to a registered welfare organisation or an approved educational institution. However, this deduction may not create or increase a tax loss.