by the reverse charge. Nonregistered persons who import services theoretically also have to declare and pay VAT on these imported services.
Exports consigned and delivered outside Namibia are zero-rated, subject to the interpretation embodied in a Practice Note (Practice Note 1 of 2001). Nonresidents qualify for refund of VAT paid on purchases of goods in Namibia and exported by them.
Services generally supplied to nonresidents who are outside Namibia at the time the services are rendered are zero-rated, provided that these services do not relate to movable or immovable property situated in Namibia.
A supply of services physically rendered outside Namibia is zero-rated.
Refunds to foreigners
Tourists qualify for refunds of VAT upon presentation of goods bought in Namibia to Customs at the point of exit from Namibia, subject to presentation of a tax invoice to the VAT Refund Administrator (VRA).
Nonresidents qualify for refunds of VAT upon presentation of proof of export (Customs-stamped export bill of entry) and a tax invoice. Refunds are dealt with by the VRA.
Nonresident businesses can file a claim with the tax administration for a refund of VAT charged on the export of goods (where the goods were not consigned and delivered by the Namibian supplier). Such refunds do not apply to goods and services consumed in Namibia.
A refund must be claimed within three years from the date the excess arose.
when the VAT return has to be filed.
Payment will be withheld until the registered person furnishes the return or claim supported by documentary proof and tax invoices.
A separate import VAT return must be filed every month, within 20 days after the last day of the relevant month. VAT on imports must be paid monthly.
Place, time and value of supplies
VAT can be paid in cash or by way of a cheque. Internet banking payments are not accepted, but a bank transfer into a specific Bank of Namibia account can be effected. Payments larger than N$5 million have to be made by bank transfer.
Place of supply
There are no place of supply rules in Namibia.
Time of supply
A supply is deemed to take place at the earlier of issuing a tax invoice or the receipt of payment. Special rules apply to supplies between connected persons and certain other supplies.
Interest is levied at the rate of 20% per annum of any unpaid VAT calculated from the date from which payment was due until the last day of the month preceding the date on which payment was made. Interest is calculated daily and compounded monthly.
Value of supply
VAT is levied on the consideration received. If a supply is carried out between connected persons, the supply is deemed to be made at the open market value if the recipient of the supply is not registered for VAT purposes. If the recipient is registered, the value of the supply is the amount of the consideration.
A refund can be claimed on the VAT return, or (in case of overpayment of VAT) per written application to the Commissioner for Inland Revenue. In a refund situation, a business may not deduct the refund from the next period’s payment.
Objections and appeals
Returns and payment of VAT
A VAT return must be made bimonthly and must be filed within 25 days after the end of the tax period. A tax period is a period of two calendar months, except for farmers who may elect a tax period of 2, 4, 6 or 12 months.
A penalty of N$100 per day will be levied for any outstanding VAT returns in addition to 10% of the outstanding VAT per month or part of a month. Electronic filing of VAT returns is not allowed. VAT payable must be paid
The VAT Act makes provision for an objection and an appeal process. However, the Act specifically defines appealable decisions, thus rendering certain decisions by the Minister not subject to appeal, for example the decision to deregister a taxpayer for VAT purposes.
VAT due in terms of an assessment issued by Inland Revenue must first be settled before the assessment can be objected against. However, the Directorate does not always enforce this requirement strictly.