← Guides / Namibia

Namibia VAT Guide 2026

Namibia's Value Added Tax (VAT) is levied at a standard rate of 15% on taxable supplies. Exports of goods and certain services are zero-rated at 0%. Essential goods including basic foodstuffs, medical services, and financial services are exempt from VAT. The registration threshold is NAD 500,000 in annual taxable turnover. NamRA administers VAT under the Value Added Tax Act, 2000 (Act 10 of 2000).

Overview — VAT in Namibia

VAT in Namibia is governed by the Value Added Tax Act, 2000 (Act 10 of 2000) and administered by the Namibia Revenue Agency (NamRA). The tax applies to the supply of goods and services by registered vendors in the course of business, and to imports. Namibia follows a standard input-output VAT system where registered vendors can deduct input VAT on business purchases from their output VAT liability. Businesses with annual taxable turnover exceeding NAD 500,000 must register for VAT. Voluntary registration is permitted for businesses below the threshold that meet certain criteria. VAT returns are filed every two months (bi-monthly).

VAT Rate Structure

Namibia has a simplified VAT rate structure compared to some other African countries:

  • Standard rate — 15% on most taxable supplies
  • Zero-rated (0%) — exports of goods, international transport, certain services rendered to non-residents
  • Exempt supplies — basic foodstuffs (bread, maize meal, milk, cooking oil), financial services, insurance, educational services, medical services, residential rent, and public transport

Zero-rated supplies allow vendors to claim input VAT credits on related purchases. Exempt supplies do not — a vendor making only exempt supplies cannot register for VAT and cannot recover input VAT.

Registration Threshold & Process

Businesses with annual taxable turnover of NAD 500,000 or more must register for VAT with NamRA. The application is submitted through NamRA's online portal. Once registered, the vendor issues VAT invoices showing the VAT amount separately. VAT invoices must contain the vendor's name, address, VAT registration number, invoice date, description of goods/services, consideration, and VAT charged. Non-compliance with VAT invoicing rules attracts penalties.

VAT Filing & Payment

VAT-registered vendors must file returns bi-monthly (every two months) by the 25th of the month following the end of the VAT period. The VAT return includes output VAT on sales and input VAT on purchases. If output VAT exceeds input VAT, the balance is payable to NamRA. If input VAT exceeds output VAT, the vendor may claim a refund or carry forward the excess. Late filing attracts a penalty of NAD 200 per day up to a maximum of NAD 5,000, plus interest at the prescribed rate. NamRA conducts regular VAT audits and may perform inspections of business premises.

FAQs

Do I need to charge VAT if my turnover is below NAD 500,000?

No, registration is only compulsory if annual taxable turnover meets or exceeds NAD 500,000. Businesses below the threshold may voluntarily register. Unregistered businesses must not charge VAT on their invoices.

Can I recover input VAT on motor vehicles?

Input VAT on motor vehicles is generally not deductible unless the vehicle is used exclusively for business purposes and is not a dual-purpose vehicle. Restrictions apply to passenger vehicles.

What is the penalty for late VAT filing?

Late filing attracts a penalty of NAD 200 per day of delay, up to a maximum of NAD 5,000, plus interest at 10% per annum on the unpaid tax.

Disclaimer

This guide provides general information about Namibian VAT for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Namibian tax advisor or the Namibia Revenue Agency for advice specific to your situation. InvestmentKit does not provide tax advice.