How To Calculate VAT Returns In Namibia
What is VAT Return?
A VAT return is a form you file with ITAS, to show how much VAT you are due to pay them. If you’re not registered for VAT, you won’t file VAT returns.
“A registered person must submit a VAT return on or before 25th day of the month following the end of the period”
How To Calculate VAT Returns In Namibia
VAT Return is calculated as the amount of VAT due on sales (called your output VAT), minus the amount of VAT you can reclaim on purchases (called your input VAT). The resulting figure is the amount you pay. If the amount you reclaim is higher than the amount due, then you’ll get a VAT refund.
Frequently Asked Questions
Is a VAT return a tax return?
How to Tell the Difference Between a Tax Return and a VAT Return. VAT is charged and recovered on transactions, both income and expenditure. This is different from your annual tax return which is based upon the declared profits of your business over your accounting year.
Can I do VAT return myself in Namibia?
You need a VAT number and a VAT online account. You can then submit your VAT Return using HMRC ‘s free online service or commercial accounting software. You cannot use your online account to send your VAT Return if you’ve signed up for ‘Making Tax Digital for VAT’.
When should I submit VAT return in Namibia?
“A registered person must submit a VAT return on or before 25th day of the month following the end of the period”
What should be included in a VAT return in Namibia?
The VAT return summarises your sales and purchases and the VAT relating to them. All the information you need should be in your VAT records. The VAT return includes your sales total (excluding VAT) and output tax – the VAT you charged on these sales and which needs to be paid to HMRC.
How often do you have to do a VAT return?
Overview. You usually submit a VAT Return to HM Revenue and Customs ( HMRC ) every 3 months. This period of time is known as your ‘accounting period. ‘
Are VAT returns difficult in Namibia?
How difficult is it to complete a VAT Return? If your business is relatively simple, you may well find that you’re able to complete your VAT return each quarter without any help. The rules and regulations which govern the treatment of VAT can be very complex.
Can you claim VAT twice in Namibia?
You don’t reclaim the VAT twice. Each quarter your accountant will add up the VAT charged to your customers, then subtract the VAT paid on your purchases (materials, equipment, etc) and you pay the difference over to HMRC.
Do you include rent in VAT return in Namibia?
However, the Rent amount should quite definitely NOT be included in the VAT Return just the same as with Bank Charges and Bank Interest. None of these items should appear on the VAT Return. The ONLY time rent appears on the VAT Return is if the Landlord has opted into a VAT scheme and is charging you VAT on your rent.
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.
Is income tax paid monthly or yearly?
Income tax is applicable to be paid by individuals, corporates, businesses, and all other establishments that generate income. Even though income tax is paid every month from the monthly earnings, it is calculated on an annual basis. The amount of income tax an individual has to pay depends on a number of factors.
Do you pay tax on dividends in Namibia?
Dividends – Dividends paid to nonresidents and certain foreign held residents are subject to NRST at 10%, unless the rate is reduced under an applicable tax treaty. Interest – Both residents and nonresidents are taxable on Namibian interest income (subject to certain exemptions and tax treaty relief).
Is tax calculated on gross or net income?
In this case, income tax is based on the gross salary of the employee and is deducted as a source by the employer. Moreover, the basic salary of an employee should be at least 50-60% of his/her gross salary. Let’s assume Mr. Dhruv falls between the salary range of Rs 2,00,001-Rs 5,00,000 and comes under 10% tax-slab.
Is rental income taxable in Namibia?
premises, land, building, house, backyard flat, and office space. 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 there capital gains tax in Namibia?
There is no capital gains tax in Namibia. Namibia also has thin capitalisation rules in terms of which the deduction of interest may be disallowed.
Is a bonus taxable in Namibia?
Bonuses are paid at the end of each tax year and accrue evenly throughout the year. The company car, with a cost of USD50,000 is used for both business and private and the employer is responsible for maintenance and petrol costs, i.e. the taxable benefit will be 18 percent of the cost of the car per annum.