Skip links

Mozambique to cut VAT to 16% 2023 – proceeds to parliament

Government approves economic package to boost growth to cut VAT from current 17%

The East African state of Republic of Mozambique is to cut its standard Value Added Tax rate from 17% to 16%. The government approved the measure on 8th November, and it now moves to parliament for review.

Businesses with a turnover above MZN 2.5 million (approximately €37,000) per year are obliged to register for VAT. There is no reduced rate. A nil rate applies to exports, basic foodstuffs, medical supplies and agricultural supplies. Financial services, residential rentals, education and medical supplies are exempted.

This is part of a range of economic measures to boost the economy. Profits tax (IRPC) is also to be cut from 32% to 10%.

Mozambique is taking an important role in securing natural gas supplies for Europe. The EU is supporting the military with direct aid to improve security around abundant natural gas field.

Sign-up for our free VAT newsletter for global updates


Get our latest news right in your mailbox