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
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