Mozambique VAT on B2C digital services 2026

Expanding VAT to digital supplies

Under the new legislation, VAT at the standard rate of 16% applies to digital goods and services supplied to consumers in Mozambique, irrespective of whether the supplier is established locally or overseas, and whether or not the supplier has a permanent establishment in the country.

The legislative changes distinguishes between digital goods and services.

What constitutes digital goods?

Digital goods are defined broadly as intangible assets delivered or represented electronically that carry economic value and can be owned, transferred, licensed or controlled by digital means. The scope extends well beyond traditional software and includes, for example:

• Digitised content and datasets used for commercial purposes
• Cryptocurrencies and other virtual assets
• E-books and similar publications
• Social media profiles and digital accounts
• Access credentials, identifiers and functionally equivalent virtual assets

The definition is deliberately technology-neutral, capturing both existing products and future digital asset types.

Scope of digital services

Digital services are characterised as intangible services supplied electronically through platforms, software, networks, algorithms or digital infrastructure. These services enable users to access, create, store or process information, or to carry out transactions remotely, regardless of the physical location of the parties.

The rules cover automated services as well as services involving limited human intervention. Examples include SaaS offerings, cloud computing, streaming and media services, digital financial services, online marketplaces and other forms of digital intermediation.

Reverse charge for B2B non-resident suppliers

Where digital goods or services are supplied by non-resident providers to Mozambican tax residents, the VAT would be accounted for under a reverse charge mechanism. The recipient of the supply would be responsible for declaring and paying the VAT, in accordance with implementing regulations that are still to be issued.

This approach reduces the administrative burden on overseas suppliers while ensuring tax collection within Mozambique.

Global outlook for VAT on digital services

VATCalc’s global VAT and GST on digital services blog keeps a live update on how countries are imposing indirect taxes on non-resident providers and electronic marketplaces.

Registering and completing Mozambican or other global VAT or GST returns is complex, time consuming and fraught with tax liability risks.  VAT Calc’s single platform VAT Filer can accurately complete any country filings with verified transactional data from our VAT Calculator or VAT Auditor integrated tools.

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