New VAT rule for exporters as from 1 March 2009

Inland Revenue Namibia confirmed that a new VAT rule will be introduced 1 March 2009 with regard to the VAT treatment of goods exported from Namibia.

As from 1 March 2009 all Namibian suppliers must arrange and pay for the transport of exported goods if the goods are consigned and delivered to an address outside Namibia to qualify for VAT zero rating.   

Documentary proof that the Namibian supplier engaged and paid a transport operator must be kept and submitted to Inland Revenue Namibia when so requested.

Practice Note 1 of 2001 which deals with the VAT treatment of goods exported by a registered person from Namibia will be amended effective 1 March 2009 to include a paragraph making it clear that the Namibian exporter of goods may only zero rate tax invoices accompanying the consignment if such Namibian exporter arranged and paid for the transport of the exported goods.

Inland Revenue, however, confirmed that a "concession" will apply in respect of exports that took place before 1 March 2009.   The VAT zero rating of export tax invoices will be acceptable also in cases where the recipient of the goods outside Namibia arranged and paid for the transport of the goods from Namibia, provided that

•  a copy of a zero rated tax invoice and  a Namibian  Customs SAD 500 export declaration  stamped by Customs officials at the point of export from Namibia are available when requested by Inland Revenue;
• a copy of the import documentation stamped by the customs authorities at the point of entry of the destination country which corresponds with the Namibian tax invoice and Customs SAD 500 export declaration are available; 
• the goods listed on the SAD 500 export Customs declaration must correspond with the goods set out in the tax invoice accompanying the consignment.

The above "concession" will not apply to transactions where the Namibian supplier has already charged and paid over the 15% VAT in respect of supplies to a recipient in a country outside Namibia and such recipient has arranged and paid for the transport of the goods from Namibia.