Introduction of VAT in Angola postponed to July 2019
Credit: Macau Hub
The entry into force of Value Added Tax in Angola has been postponed from January 2019 to July of the same year due to delays in legislation, an official said on Wednesday in Luanda.
The coordinator of the technical group for the introduction of VAT, Adilson Sequeira, was speaking on the sidelines of a meeting between the head of the General Tax Administration (AGT) and producers of billing and accounting computer systems and companies responsible for printing invoices.
Sequeira said that a number of legal instruments were being analysed by a technical group of the Council of Ministers, which will later be submitted to parliament, namely the legal systems of Invoices and Electronic Submission, according to state newspaper Jornal de Angola.
With the introduction of VAT (IVA) the Angolan government intends to replace the Consumer Tax, which currently allows double taxation or a “cascade effect,” a situation seen in many countries that Angola intends to avoid.
At the end of July, consultants from the International Monetary Fund (IMF) considered that Angola was prepared to introduce VAT as of 2019, when all the conditions will be in place.
The Angolan authorities propose to apply a single rate of 14% when VAT is introduced in the country, with some products included in the basic basket of goods, fuel and medicines exempt from the newly introduced tax. (macauhub)