Obtaining an exemption from VAT on personal / household effects or goods

As we are well within the 2nd half of the 2018 year, some people may have accepted employment in Namibia from elsewhere in the world. Some people might have decided to emigrate to or retire in Namibia. Some Namibians could have studied or worked outside the country and are now returning to Namibia.

Although the Customs and Excise Act (Act No. 20 of 1998) and the Value-added Tax Act (Act No. 10 of 2000) explicitly provide for a rebate (exemption) from customs duties and VAT upon importation of personal effects and household items in terms of item 407.04; the Directorate Customs and Excise laid down strict controls to ensure that the exemption from duties or VAT are legitimately granted. The exemption is therefore not automatic and confirmation must be applied for in writing from the relevant department at Customs Head Office in Windhoek. The extract from legislation in the Customs and Excise Act, similar to the exemption in the Value-added Tax Act, is as follows: “407.06 Household furniture, other household effects and other removable articles, including equipment necessary for the exercise of the calling, trade or profession of the person, other than industrial, commercial, or agricultural plant and excluding motor vehicles, alcoholic beverages and tobacco goods, the bona fide property of a natural person (including a returning resident of Namibia after an absence of 6 months or more) and members of his or her family, imported for own use on change of his or her residence to Namibia: Provided these goods are not disposed of within a period of 6 months from date of entry…”

The application must be in the following format:

1. APPLY TO: THE PERMANENT SECRETARY, MINISTRY OF FINANCE, PRIVATE BAG 13295, WINDHOEK;

2. ATTENTION: COMMISIONER - CUSTOMS AND EXCISE (TECHNICAL CONTROL);

3. SUBJECT: APPLICATION FOR EXEMPTION FROM VAT ON PERSONAL/HOUSEHOLD EFFECTS/GOODS;

4. The applicant must state the reasons for the confirmation of the exemption;

5. The following documents must be attached:

a. Copy of Passport

b. Copy of Permanent residence permit, if applicable

c. Copy of work permit

d. Detailed Packing List, including market value of goods

e. Registration certificate of a car if any and value

f. Bill of lading or airway bill as supporting documents

g. Letter of domicile

h. Marriage Certificate, if applicable

i. Study permit, where applicable

Once Customs is satisfied that the application is bona fide, a letter will be issued, confirming the exemption. The exemption letter is further required by the Asycuda department, which creates a unique exemption/rebate code on the Customs system. This allows the clearing agent to clear the personal effects and household items of a returning Namibian resident or a person who relocates to Namibia, exempt from duties/import VAT into Namibia at the point of entry.

For further information, please do not hesitate to contact Nelson Lucas at +264 61 284 1000 or email him at [email protected].