Non-resident e-services VAT obligations
Mozambique implemented Value Added Tax on non-resident providers of digital services in 2017. This followed the OECD model, requiring VAT to be charged and collected in the country of resident of the consumer.
B2B services are treated as nil-rated by the foreign provider of e-services, and the Mozambique VAT-registered resident business should use the reverse charge. Note: the provider should check their customer’s Tax Registration Number.
What services liable to VAT in Mozambique
The 2017 legal guidance (Law Number 13/2016) specifies that electronic services subject to VAT in Mozambique. This includes:
- the supply and hosting of computer sites, remote maintenance of programs and equipment;
- the provision of digital content (music, films, online games, games of chance, images, videos, texts, information, etc.);
- subscription to cinema and television platforms dedicated to video on demand (VOD) services;
- subscription to databases or their provision;
- the remote provision of training, advice or assistance services, etc.
- the supply of software and applications and their updating;
The current VAT rate in Mozambique is 16%. Non-resident are required to VAT register immediately as there is no VAT registration threshold. They must also appoint a fiscal representative. More often, there is an obligation for withholding of VAT by customers.
VAT Calc’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.
Asia Pacific VAT on digital services
| Comments (click for details) | Rate | Date | Threshold | Comments |
| Australia | 10% | Jul 2017 | AUD $75,000 | |
| Azerbaijan | 12% | Jan 2017 | – | |
| Armenia | 20% | Jan 2022 | AMD 115million | |
| Bangladesh | 5% - 15% | Jul 2019 | – | B2B and B2C |
| Bhutan | 7% | Jul 2021 | Nu 5million | |
| Cambodia | 10% | Mar 2022 | KHR 250m | |
| China | 6%-13% | N/a | Nil | Withholding VAT; B2B and B2C |
| Fiji | 9% | TBC | FJD 300,000 | |
| India | 18% | Jul 2017 | - | |
| Indonesia | 11% | Aug 2020 | IDR600m or 12k customers | |
| Japan | 10% | Oct 2015 | JPY 10 million | |
| Kazakhstan | 12% | Jan 2022 | Nil | |
| Kyrgyzstan | 12% | Jan 2022 | Nil | |
| Laos | 10% | Feb 2022 | LAK 400m | |
| Malaysia | 8% | Jan 2020 | RM500,000 | |
| Nepal | 13% | Jul 2022 | Rupees 2m | Also 2% DST |
| New Zealand | 15% | Oct 2016 | NZD 60,000 | |
| Pakistan | 2% | Sep 2021 | Nil | Marketplace Withholding VAT |
| Palau | 10% | Jan 2023 | $300,000 | |
| Philippines | 12% | 2024 ? | P 3million | |
| Singapore | 9% | Jan 2020 | S$ 100,000 | |
| South Korea | 10% | Jul 2015 | Nil | |
| Sri Lanka | 18% | 2025? | LKR 60m | Proposals only |
| Taiwan | 5% | May 2017 | NTD 480,000 | |
| Tajikistan | 14% | Jan 2021 | ||
| Thailand | 7% | Sep 2021 | 1.8m Baht | |
| Uzbekistan | 12% | Jan 2020 | Nil | |
| Vietnam | 10% | Dec 2020 | – |
