Tax Invoice Requirements In Namibia

What is tax invoice?

Tax invoice is an invoice issued for taxable supply of goods & services. Tax invoice
broadly contains details like description, quantity, value of goods/service, tax charged
thereon and other particulars as may be prescribed. Tax invoice is a primary evidence for
recipient to claim input tax credit of goods & service.

These are the tax invoice requirement in Namibia

A registered person is required to issue a tax invoice which contains particulars such as: the words “tax invoice”, name and address and VAT number, name and address of recipient; description of goods and total amount exclusive of VAT, the VAT charged and total amount inclusive of VAT.

Frequently Asked Question

How much is the import duties in Namibia?

Value-added tax is payable on the taxable value of all goods sold or imported. The standard rate is 15%.

Who should pay tax in Namibia?

A salary earning individual who earns an income of more than N$ 40 000 per annum and non-salary income in excess of N$ 5 000 per month is liable to pay tax and should register for income tax. Registration is done at the IRD by completing a registration form and then the taxpayer will be given an Income Tax Number.

Are donations tax deductible in Namibia?

There is currently no donations tax, estate duty or capital gains tax in Namibia. Certain capital gains are taxed as normal income. In determining the value for transfer duty purposes, VAT, where applicable, is excluded.

What is tax invoice in Namibia?

Tax invoice is an invoice issued for taxable supply of goods & services. Tax invoice broadly contains details like description, quantity, value of goods/service, tax charged thereon and other particulars as may be prescribed. Tax invoice is a primary evidence for recipient to claim input tax credit of goods & service.

How is tax calculated on salary in Namibia?

The most straightforward way to calculate effective tax rate is to divide the income tax expenses by the earnings (or income earned) before taxes. For example, if a company earned $100,000 and paid $25,000 in taxes, the effective tax rate is equal to 25,000 ÷ 100,000 or 0.25.

What is the difference between an excise tax and a sales tax in Namibia?

Sales tax applies to almost anything you purchase while excise tax only applies to specific goods and services. Sales tax is typically applied as a percentage of the sales price while excise tax is usually applied at a per unit rate.

Is government pension taxable in Namibia?

Pension and RA funds – The total lump sum is tax-free, but the annuities /pensions paid to dependants are taxable at the marginal rate. The lump sum must however be less than 50% of the entire death benefit. The difference being paid as annuities, will be taxable.

What is the VAT rate 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.

Is there property tax in Namibia?

The applicable tax rates are set by the local municipalities. For the tax year 2009-2010, the rates applicable in the municipality of Windhoek in respect of real properties are 0.001578% of the site value per month and 0.000434% of the improvement value per month.

What is the difference between invoice and tax invoice in Namibia?

As such, the main difference between a standard invoice and a tax invoice is that the tax invoices include information about Goods & Services Tax (GST), whereas regular invoices don’t. Both types of invoices are used for annual accounts and financial reports, while tax invoices are also needed to claim tax credits.

What is the difference between proforma invoice and tax invoice in Namibia?

Tax invoice is used to notify the buyer that the payment is due. Pro Forma invoice is used to provide the prospective customer an estimate about price, type of goods as well as other terms of sale in advance. Thus, the prospective customer may decide whether to purchase goods or not on the basis of Proforma Invoice.

Is a tax invoice compulsory in Namibia?

The GST law mandates that any registered person buying goods or services from an unregistered person needs to issue a payment voucher as well as a tax invoice. It not only evidences the supply of goods or services, but is also an essential document for the recipient to avail Input Tax Credit (ITC).

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 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.

What is a tax invoice and what is it used for in Namibia?

When you make a taxable sale of more than $82.50 (including GST), your GST-registered customers need a tax invoice to claim a credit for the GST in the purchase price. If a customer asks you for a tax invoice you must provide one within 28 days of their request. Recipient-created tax invoices.