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Mozambique VAT on B2C digital services

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


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