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Angola extends 14% VAT to all taxpayers 2021; follows Oct 2019 implementation

Angola has extended its Value Added Tax regime on 1 January 2020. The 14% regime was implemented on 1 October 2019 for large tax payers.

VAT replaced the 10% Turnover Tax. The current VAT rate in Angola is 14%.  Basic foodstuffs are nil-rated. Financial services, education, healthcare, real estate, petrol and gaming are exempted.

Initially, around 400 large enterprises with a turnover above 15m kwanzas were subject to the Angolan General Tax Administration’s VAT compliance regime, with other traders enjoying a two-year implementation period. The transitional regime for smaller businesses applies a 7% VAT rate on turnover. Non-residents 7% turnover VAT will apply going forward.

Angola SLIM VAT

Angola is the first state to introduce the so-called SLIM VAT regime. It has since been copied in Poland. The basic outlook is:

  • Simple, as it should establish a broad scope for the tax, with a reduced number of exemptions and with simplified tax calculations
  • Local, as it should be suitable for the Angola’s national reality and socio-economic context
  • Modern, as it should have a digital component and it should follow the international best practices in dealing with tax fraud and evasion

Compiling Angolan VAT returns can be complex.  VAT Calc’s single platform VAT Filer can correctly complete any country filings with verified VAT or GST transactional data from our VAT Calculator or VAT Auditorintegrated tools.

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