VAT Registration and Backdated Compliance for a Professional Services Firm

A Namibian management advisory firm based in Windhoek, owned by two partners, providing financial and strategy advisory services to government entities and private sector clients.

The firm had crossed the NAD 500,000 VAT registration threshold 11 months earlier but had not registered. The partners had been advised by a bookkeeper that professional services to government were exempt from VAT, which is not accurate under Namibian VAT rules. By the time they sought proper advice, they had invoiced clients without VAT for nearly a year above the registration threshold, exposing them to a liability for output tax plus interest and potential penalties.

We assessed the full VAT exposure from the date of the missed registration threshold, calculated the output tax liability on all invoices issued during the non-registration period, and identified input tax that could legitimately be claimed for the same period to reduce the net liability. We prepared and submitted the VAT registration application and a voluntary disclosure covering the backdated liability, together with a payment proposal. We also restructured the firm's invoicing template going forward.

VAT registration completed. Voluntary disclosure submitted and the penalty reduced to the minimum rate applicable for unprompted disclosure. Net liability settled. The firm now submits monthly VAT returns through our office and the partners have a clear picture of their ongoing obligations.