The Namibian government is reportedly reviewing the VAT refund process at Hosea Kutako International Airport, Windhoek, as numerous travellers have complained they have not received refunds.
Sam Shivute, Commissioner of the Inland Revenue Department, was quoted in local newspapers saying the government planned to increase the threshold for immediate VAT refunds at the airport, currently limited to amounts not exceeding N$5 000 (R5 000).
The process for refunds above the threshold will also be improved and speeded up. While it should take up to three weeks for the department to refund VAT amounts exceeding N$5 000, numerous travellers complain that the process takes several months, with some saying they have never received refunds at all.
One traveller posted on TripAdvisor: “I completed all the required documentation and presented my goods for inspection at Windhoek Airport at the end of August. I was told my cheque would be posted within six-eight weeks. Almost seven months later, I am still waiting for my money.”
Retailers at the airport have also criticised the process. Benita Herma, CEO of Herle & Herma Jewellers, was quoted in the Economist saying that VAT refunds to foreign visitors was a huge concern for businesses, particularly those that relied on tourists. She said: "During the past four to five years, there have been dozens of complaints from our clients who come back to us with the information that they never received their money. Not after six months, not after two years. It simply never reaches them.”
Shivute said he expects the review of the VAT refund process to be finalised before the end of the year.
