How Much Is VAT in Namibia?
Value Added Tax (VAT) is a tax charged on the value of goods and services at each stage of production. This tax is paid indirectly by the final consumer. Entities or firms along the value chain receive a merit, thus, a tax credit for Value Added Tax (VAT) already paid. The final consumer does not receive such which makes it a tax on final consumption.
Value Added Tax (VAT) plays a vital role in businesses and can be charged on a variety of goods and services. And each firm has a rule governing their VAT especially the Charities. Globally, each country has it VAT rate. Some to has VAT free.
Example of Value Added Tax (VAT)
Let assume that, Mr. Clifford’s product costs $50 and there’s a 15% VAT, the consumer or the buyer will have to pay $57.50. An amount of $50 goes to the merchant while the remaining $7.5 goes to the government.
Who Is Value Added Tax (VAT) Exempt
The sales of some goods that exempt VAT. This means, you whitethorn not deduct the VAT you have paid on acquisition. Such goods and services include; education, financial services and healthcare.
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Types Of VAT
There are three types of Value Added Tax (VAT). They are;
Standard-rated: Are charged on the supply of goods and services at a rate of 14%.
Zero-rated: Are charged on the supply of goods and services at a rate of 0%.
Exempt supplies: Are charged on the supply of goods and services at a rate of either 14% or 0%.
How VAT Works In Namibia
VAT is billed on all imports for home consumption in Namibia. Imports in terms of donations, technical assistance and local supply is zero-rated. The tax system in Namibia is based on source and not residency.
VAT Rate In Namibia
In Namibia, Value Added Tax (VAT) charged is at a rate of 15%.