Import VAT exemption on certain feed products

19 August 2019 | Business

The Namibia Agricultural Union (NAU) approached the department of inland revenue to exempt certain animal feed products by Namibian farmers from import value-added tax (VAT).

Inland Revenue replied that goods imported under rebate item 412.11, paragraph 2(g)(i) of Schedule V to the Value Added Tax Act (Act No. 10 of 2000), as amended (the VAT Act), may qualify for exemption from VAT on importation.

The mentioned rebate item reads: “Goods imported (1) for the relief of distress of persons in cases of famine or other natural disaster.” Inland Revenue confirmed that the exemption would be applied in view of the prevailing drought conditions and consequent state of emergency declared by president Hage Geingob earlier.

The exemption will be administered by the customs and excise department. Customs is responsible for the collection and recording of import VAT on behalf of Inland Revenue on the collection of import VAT in terms of section 14(5) and (6) of the VAT Act.

Who qualifies for the exemption?

Customs confirmed that the import VAT exemption applies to individual farmers (communal and commercial farmers) in all regions of Namibia importing animal feed products directly for own use and not for resale.

It is important to note that the exemption will only apply on importation and not when buying animal feed products in Namibia from registered suppliers. In the last mentioned instance, VAT will still be payable at the standard rate of 15%.

Which products may be imported exempted from VAT?

Customs confirmed that the following products fall under the exemption:

(a) Roughage: Lucerne, grass-teff and other wheat straw, oats straw/hay, maize hay, sorghum hay and silage;

(b) Energy and protein concentrates: Cotton oil cake, sunflower oil cake, maize chop, wheat bran, soya oil cake, full fat soya, maize meal, whole maize kernels, molasses, wheat, barley, oats, sunflower hulls, whole cotton seed and maize bran.

Where may application be made for exemption from import VAT on the above products?

Application should be made at Customs Head Office, Division: Trade Facilitation, Fiscus Building, John Meinert Street or in the alternative, at the customs point of entry office.

Once approved, the exemptions must be forwarded to the AsycudaWorld Functional Team for capture on the Customs system prior to importation to ensure exemption from import VAT.

Which documentation should support the application for exemption from VAT on importation of animal feed products?

Commercial and communal farmers should provide proof of registration at the Meat Board of Namibia as a farmer or any other legally recognised registration.

An application letter should be submitted, supported by (a) the invoice from the foreign supplier of the animal feed and (b) copy of ID or passport of the applicant and (c) import permits, where applicable.

Other information

Customs indicated that the granting of the exemption takes about 3-5 working days. It is therefore suggested that the application be submitted at least 7 days before the consignment of animal feed products will arrive at the Namibian border.

Note that the exemption will not be granted retrospectively. Should a truck with the animal feed products arrive at the border post without the exemption granted and recorded on the Customs system and import VAT is paid in order to proceed with urgent delivery to the Namibian farmer, a refund of import VAT will not be made if an exemption is applied for after the delivery.

It does not matter where the animal feed products are imported. It may be from another Southern African Customs Union SACU country (e.g. Botswana or South Africa), from another country in the Southern African Development Community (SADC) or even from a non-SACU or SADC country.

The exemption only applies to import VAT. Customs duties (where applicable) remain payable to Customs at the point of entry.

Chantell Husselmann is a tax leader at PwC Namibia. Tax Time is published in bi-monthly in Market Watch on a Monday.

Similar News


Oryx expects better year results

22 hours ago | Business

Jo-Maré Duddy - Oryx Properties expects its earnings per share (EPS), headline earnings per share (HEPS) and profit for the year ended 31 December 2019...

SA's plans to open up power generation welcomed

22 hours ago | Business

South Africa's announcement that it will open up electricity generation to other players, effectively breaking Eskom's monopoly, has been welcomed by many, especially the mining...

New grape varieties from Naute scheme

22 hours ago | Business

NAUTE DAM - The Naute Irrigation scheme in the ||Kharas region plans to introduce new varieties of grapes in order to increase production and extend...

Company news in brief

22 hours ago | Business

First Quantum: Talks on Zambia stake sale stallCopper miner First Quantum Minerals Ltd, which in the past has been in talks with a Chinese company...

Local Chinese businesses feel virus fear

1 day - 17 February 2020 | Business

Ndapewoshali Shapwanale - Namibia should by right feel little concern about the coronavirus outbreak given that the sparsely-populated desert country is 12 000 kilometres from...

Corona: Airlines could lose US$5 bn

1 day - 17 February 2020 | Business

Montreal - The new coronavirus outbreak could mean a US$4-5 billion drop in worldwide airline revenue, the International Civil Aviation Organisation has said.The UN agency...

I didn’t charge my customer VAT, what now?

1 day - 17 February 2020 | Business

Every registered person who carries on a “taxable activity” is by law, required to levy value-added tax (VAT) on their supplies of goods/services, unless exempt...

City's data monopoly is illegal

1 day - 17 February 2020 | Business

The City of Windhoek's intention to monopolise the fibre-optic data network in the capital is unlawful, while its plan to develop its own network infrastructure...

'Local is lekker' delights Gazans

1 day - 17 February 2020 | Business

Guillaume Lavallee and Joe Dyke - Off a bumpy dirt road in Gaza city, a group of children stood outside a half-open factory door, desperate...

Company news in brief

1 day - 17 February 2020 | Business

Eskom to spend millions on severance packagesSouth Africa's Eskom has offered some managers voluntary severance packages, capping costs at R400 million, a communique sent to...

Latest News

Towering above the rest

12 hours ago | Sports

LIMBA MUPETAMIToday is the 24th anniversary of Frank Fredericks’ world indoor 200m record sprint in Liévin, France. He remains the world record-holder with a time...

Oryx expects better year results

22 hours ago | Business

Jo-Maré Duddy - Oryx Properties expects its earnings per share (EPS), headline earnings per share (HEPS) and profit for the year ended 31 December 2019...

Price monster throws consumer a...

22 hours ago | Economics

Consumers had to wait 15 years to kick off a new year with meat in deflation and last month didn't disappoint: Annual meat inflation in...

Teachers share rooms with learners

22 hours ago | Education

Some learners at Sikarosompo Primary School in Kavango West have opted to rather walk between four to 20 kilometres to and from school every day...

N$500k to create jobs

22 hours ago | Labour

The labour ministry only received N$500 000 in its annual budget for employment creation, its executive director Bro-Matthew Shinguadja has confirmed.“We budgeted N$500 000 and...

Cops nab Fishcor's Nghipunya

22 hours ago | Crime

Fishcor CEO Mike Nghipunya is being questioned in connection with the Fishrot bribery saga. Police spokesperson Deputy Commissioner Kauna Shikwambi confirmed Nghipunya's arrest yesterday.Anti-Corruption Commission...

Africa Briefs

22 hours ago | Economics

SA union says wage deal not open for reviewSouth African trade union NEHAWU, one of the country's largest public sector unions, said on Friday that...

SA's plans to open up...

22 hours ago | Business

South Africa's announcement that it will open up electricity generation to other players, effectively breaking Eskom's monopoly, has been welcomed by many, especially the mining...

Don't insult anyone, young or...

22 hours ago | Opinion

Police chief Sebastian Ndeitunga was at the centre of a storm all weekend for remarks he made that he would arrest young people hurling insults...

Load More