Windhoek: Government plans to introduce reforms to value-added tax (VAT) administration, including electronic invoicing and sector-specific relief measures, according to a legal analysis of the national budget released by Cliffe Dekker Hofmeyr (CDH) on Wednesday.According to Namibia Press Agency, the reforms form part of measures contained in the national budget tabled in Parliament last week by Finance and Social Grants Management Minister Ericah Shafudah. In its CDH Budget 2026 Alert, the firm reviewed recent tax and regulatory developments, noting a strong move toward modernising the legal framework governing VAT.The report indicates that the government intends to implement electronic invoicing to improve legislative clarity, strengthen compliance, and reduce fraud. The system will enable real-time verification of transactions, which is expected to limit incorrect input tax claims. Consequently, businesses may need to review their existing invoicing systems to ensure compatibility with the proposed dig ital reporting requirements.Beyond administrative reforms, the budget also proposes amendments to VAT legislation aimed at supporting priority sectors. These include VAT relief on agricultural input imports and the creative industry. The measures are intended to reduce input costs for agricultural producers and support the growth of Namibia's creative economy.The report notes that further details on the scope and conditions of the relief will be outlined in forthcoming legislative amendments expected to be introduced in Parliament.VAT remains one of the government's primary sources of revenue and is currently levied at a standard rate of 15 percent on most goods and services.According to the analysis, the 2026/27 policy seeks to balance the need for strong revenue collection with targeted support for sectors considered vital for economic diversification. By providing relief to farmers and artists, the government aims to stimulate local production and cultural exports while strengthening revenue admini stration across the country.