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Guinea-Bissau to implement VAT January 2023

Value Added Tax to replace 15% Sales Tax

The West African country of Guinea-Bissau is set to introduce a Value Added Tax regime from January 2023. This would replace the existing 15% Sales Tax, Imposto Geral Sobre Vendas e Serviços. There will be a VAT registration threshold of FCA 10million. It will also be possible to opt to join the 5% simplified regime for enterprises with a turnover of up to FCA 40million.

Exempt: financial services; real estate; domestic gas heating; eduction; and medicines.

Once registered, taxpayers will need to submit monthly VAT returns by the 15th of the following month. Records supporting taxable transactions must be kept for at least 5 years.

The country’s government looks confident in the new tax’s introduction as the economy has recovered well from the worst effects of the COVID lockdowns.

The current sales tax (imposto geral sobre vendas e serviços) is levied on most goods and services.  There is a luxury rate of 20%; and reduced 10% rate on certain imports.

Guinea-Bissau would join the 171 country to introduce VAT.

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Which countries will adopt VAT next?

The countries likely to add to the total include:


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