Namibia – Lovat Compliance

VAT Standard rate

VAT standard rate in the Republic of Namibia in 2024 is 15%, which applies to supplies of goods and import, with certain exemptions.

VAT registration threshold

If the revenue of the businesses exceeded N$500,000 (approx. EUR 25,000) for the last 12 month, they must register for VAT purposes in Namibia. Voluntary registration can take place when the estimated revenue amounts to N$200,000 (approx. EUR 10,000).

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Deductible VAT

Businesses can reclaim input tax by deducting it from output tax. Expenses that are not relevant to the business cannot be claimed for deduction.

Registration procedure

Businesses have to apply for business registration within 21 days starting from the first day of their taxable activity in Namibia. An application for registration has to be in such form as may be determined by the Commissioner. The business that applies for registration in Namibia must provide the Commissioner with the additional information and documentation as the Commissioner may require for the purposes of registering that business. It is mandatory to have tax representative in Namibia to register, submit and pay VAT.

Keeping records

The period of keeping records in Namibia must be at least five years.

VAT returns filing and payment date

Business must submit returns and pay VAT in Namibia on bi-monthly basis. The deadline is the 25th of the month following the reporting period.

Penalties in Namibia

Penalty for late registration – double the amount due from the time the business became liable to register for VAT in Namibia.
Penalty for late filing of VAT returns or import declaration – N$100 per day.
Penalty for late payment – 10% of amount due.
Penalty for errors – double the amount due.

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VAT standard rate

The standard VAT rate in Namibia in 2024 is 15%.

Threshold

Non-resident companies engaged in the permanent supply of services to Namibia are required to register as VAT payers if their income exceeds NAD500,000 (approximately USD 26,800).

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Deductible VAT

VAT is refundable if the amount of input tax to be refunded is greater than the amount of output tax payable.

Pieces of evidence

Namibian law does not provide for a precise definition of the place of supply of digital services.

E-services list

The list of digital services includes the following:

E-books, images, movies, and videos;
Loud-based software and as-a-Service products, such as Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS);
Online ads and affiliate marketing;
Dating;
Software licensing, updates, and add-ons, including website filters and firewalls;
Mobile applications, video games, and online games;
Webcasts and webinars;
Search engine services;
Social networks.

Other services which are delivered over the internet or an electronic network due to their nature – are essentially automated and involve only minimal human participation.

Registration procedure

You can apply for VAT registration in Namibia both online and on paper. The application must be completed and sent to the NamRA tax authority. After approval and receipt of the registration certificate, the registration becomes effective on the first day of the second month after its confirmation.

Tax representative

Non-resident companies and digital service providers wishing to register as VAT payers are required to appoint a tax representative, who must be an individual and a resident of Namibia.

Keeping records

All tax records for VAT, including invoices, ledgers, debit slips, etc. in Namibia must be kept for 5 years after the tax period.

Filling VAT return and payment date

The deadline for filing and paying tax returns in Namibia is 2 months. Tax returns must be filed and paid by the 25th day of the month following the tax period; if this day falls on a weekend, the date is postponed to the next business day.

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