Tax rate by region Angola

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Understanding VAT in Angola: Key Points for Businesses

Angola implemented a Value-Added Tax (VAT) system in 2019. This system replaced the former Sales Tax and aims to streamline tax administration and boost government revenue. The standard VAT rate in Angola is 14%, applicable to SaaS and most digital services. Businesses operating in Angola must comply with the VAT regulations by registering for the tax, charging the appropriate rate on taxable supplies, and filing VAT returns on a monthly basis. The VAT payment deadline is the end of the following month after the transaction. It’s crucial to retain records like invoices, VAT returns, and accounting records for a period of 5 to 10 years for audit purposes.

Angola

Angola established a VAT system in 2019, seeking to streamline tax administration and increase government revenue.

Official government link: Agência Geral Tributária

14.00%

E-products and services VAT/Sales tax rate

Reduced tax rate product categories

No specific reduced tax rate for digital goods and services

Exempted product categories

E-books are exempt

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

Within 30 days after the commencement of activities

Online registration possible

Yes

Local representative needed

No specific information found

Registration procedure

Obtain a TIN with AGT (General Tax Administration)
Appointment of a local representative who is jointly liable for the VAT
Submission of necessary documents and information about the business
Receive VAT registration certificate from AGT
Comply with all VAT-related obligations

List of digital and electronic services liable for tax

SaaS and cloud-based software, download and streaming media, apps, dating and membership sites, e-learning, gaming, and online storage and software are all part of the digital services offered.

Penalties

Late submission of VAT returns or VAT electronic returns and general non-compliance (e.g. failure to maintain proper records or incorrect VAT reporting)

Registration threshold

No threshold, non-resident companies must register for VAT

Filing interval

Monthly

Filing deadline

VAT must be paid by the end of the following month for transactions carried out in the previous month.

E-invoicing requirements

Not specified

Record keeping

Type of documents: Invoices, VAT returns and Accounting records

Interval to keep them: Records must be kept between 5 to 10 years

Effortless Subscription Management and Billing

Angola’s VAT System: Exemptions, E-invoicing, & Reverse Charge

Regarding specific VAT categories, e-books are exempt from VAT in Angola. Businesses should consult the tax authorities for a complete list of VAT-exempt items and services. It’s important to ensure accurate VAT classification for all goods and services offered. While e-invoicing is not mandatory in Angola, it’s a highly recommended practice to improve efficiency and ensure compliance. Businesses selling to customers in Angola should be aware of reverse charge mechanisms that may apply depending on the customer’s VAT registration status.

Navigating VAT Compliance for Multi-Jurisdictional Businesses

For businesses with operations in multiple jurisdictions, it’s advisable to consult with tax professionals to ensure compliance with local VAT regulations and avoid any potential risks or penalties. Maintaining accurate records and seeking professional guidance can help businesses navigate the complexities of VAT successfully. Continuous monitoring of changes in VAT regulations is also crucial for staying compliant and adapting strategies accordingly.

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