Tax rate by region Angola

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

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.

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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

How-To Guides: Angola SaaS VAT

Step: 1 Threshold

Effective October 1, 2019, Angola requires non-residents providing remote services, including digital services, to consumers (B2C) in Angola to register for and collect VAT, regardless of the sales amount. Angola does not have a threshold, which means that registration is mandatory.

Step: 2 Appointing a Fiscal Representative

While it is not mandatory to work with a local representative when registering for tax, some businesses may decide to do so.

Step: 3 Obtain NIF/VAT Number

The representative must apply to the Administração Geral Tributária (AGT) (General Tax Administration) to obtain a Tax Identification Number (NIF), which serves as the VAT number.

Step: 4 Submit Start-of-Activity Documentation

All corporate entities carrying out taxable activities must submit the “start-of-activity” documentation upon commencement of taxable activity to the competent tax department (Repartição Fiscal). The process is typically conducted in person at the local tax office.

 

Exemptions: Notably, e-books are currently exempt from VAT.

Step: 1 Standard VAT Rate

In Angola, the standard VAT rat is 14%. 

 

Step: 2 VAT Formula

Calculate the tax rate using the formula:

VAT Amount = Net Price X 14%

Step: 1 Selling B2C

The non-resident supplier generally does not charge or collect the 21% VAT. The VAT is typically withheld and remitted to the AFIP by local credit card companies, payment processors, or financial institutions when processing the payment.

 

 

Step: 2 Selling B2B

The seller issues an invoice to the local business customer with a clear note that the Reverse Charge applies (zero VAT charged). Collection is the responsibility of the customer.

 

Step: 3 Invoice Requirements

Foreign suppliers typically issue standard commercial invoices that include:

  • supplier name
  • supplier address
  • description of service
  • price charged.

Step: 1 Filing Interval

Tax-registered payers need to file taxes on a Monthly basis. 

 

Step: 2 Filing Deadline

Due dates are staggered between the 12th and 22nd of the month following the period end, based on the last digit of the CUIT (Tax ID).

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Angola’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

Overwhelmed by SaaS sales tax compliance?

Our team of SaaS tax experts is here to help. Contact us today for a free consultation. 

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