Input tax not yet claimed may be deducted if such input tax arose from a transaction that occurred during the current or immediately preceding two VAT periods (i.e. input tax older than 6 months cannot be claimed). However, Inland Revenue has granted a dispensation that input tax may be claimed for a period of three years.
An invoice for VAT purposes must contain the following information:
the words ‘tax invoice’ must be shown in a prominent place;
the name, address and VAT identification number of the supplier;
the name, address of the recipient (purchaser);
the serial number of the invoice;
date of issue;
a description of the goods or services supplied;
the quantity or volume of the goods or services supplied; and
the total amount of the tax charged, the purchase price, excluding tax and the purchase price including tax.
Electronic invoices are not accepted, foreign languages on invoices are not allowed and invoicing may not be done in a foreign currency.
There is no requirement to state the VAT registration number of the customer on the tax invoice.
Credit notes and debit notes
A tax credit note or tax debit note must contain the following particulars:
the words ‘tax credit note’ or ‘tax debit note’ in a prominent place;
Specific VAT rules
the name, address and VAT registration number of the registered person making the supply;
Amounts written off as bad debts qualify for deduction as input VAT.
the name and address of the recipient of the supply;
the date on which the tax credit note or tax debit note was issued;
the value of the supply shown on the tax invoice, the correct amount of the value of the supply, the difference between those two amounts, and the tax that relates to that difference;
a brief explanation of the circumstances giving rise to the issuing of the tax credit note or tax debit note; and
sufficient information to identify the taxable supply to which the tax credit note or tax debit note relates.
Land and buildings
Services to nonresidents directly in connection with land or buildings in Namibia are subject to VAT.
Supplies of goods and services comprising the sale of immovable property or the erection of or extension to a building used for residential purposes are zero-rated for VAT purposes.
VAT at 15% is applicable to the sale and the leasing of commercial property. In the case of a sale of commercial property, VAT is levied in addition to transfer duty.
Additional export documentation
In case of an export, a business must present the following data:
a tax invoice; and
a stamped SAD 500 (Customs and Excise declaration for home consumption).
Rentals of buildings used solely for commercial purposes are subject to VAT at the standard rate. Rentals of buildings used solely for residential purposes are exempt from VAT. Financial lease payments to a bank, financier or dealer are not subject to VAT.
Records must be kept for a period of five years. Records cannot be kept solely in electronic form – paper copies are still necessary.
Promotional gifts that are not part of the normal stock of the retailer may be provided exempt from VAT.
The original purchase invoices and copies of all sales invoices must be kept in Namibia. Accounting records (i.e. trial balances, general ledgers, cashbooks, etc.) may be kept in another country, provided that these are kept on an electronic system that is linked to Namibia and that print-outs can be provided within 24 hours after receiving a request for documents from Inland Revenue.
A deemed input tax credit is available to a registered person when acquiring used goods from a person who was not entitled to claim input tax on such goods. This provision essentially requires that the person from whom the used goods have been acquired must have paid input tax on the original acquisition of such goods and