Tax rate by region Cape Verde

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Cape Verde SaaS VAT: All You Need to Know

Cape Verde offers a stable and friendly tax environment for SaaS businesses. It adopted a Value Added Tax (VAT) system in 2004 to modernize its tax framework and enhance public revenue. The standard VAT rate for SaaS and other digital services is 15.0%. Cape Verde does not offer a reduced VAT rate for specific categories of products or services, and currently has no specific exemptions for digital goods and services.

Cape Verde

Cape Verde adopted a VAT system in 2004 to enhance public revenue and modernize its tax framework.

Official government link: Agência de Receitas de Cabo Verde

15.00%

E-products and services VAT/Sales tax rate

Reduced tax rate product categories

No specific reduced tax rates for digital goods and services

Exempted product categories

Cape Verde does not have specific exemptions for digital goods and services

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

A non-resident company must register for tax purposes when it provides services or sells goods that are taxable in Cape Verde.

Online registration possible

Yes

Local representative needed

Yes

Registration procedure

Determine if your business needs to register based on your taxable activity. Prepare the necessary documentation, including proof of identity, company registration documents, and information about a local representative. Apply for registration online through the Cape Verde tax authority’s portal. After submitting your application, wait for approval, and you will receive your tax ID.

List of digital and electronic services liable for tax

Apps, e-books, intermediary services between sellers and buyers on marketplace platforms (including advertising and listing fees), download or streaming media, online storage and data processing, and domain name services are also considered taxable digital services.

Penalties

Penalties for late payment
Penalties for late filing
Interest on overdue amounts

Registration threshold

No threshold, non-resident companies must register for VAT

Filing interval

Quarterly

Filing deadline

By the 20th of the following month

E-invoicing requirements

Yes

Record keeping

Businesses must maintain records for all transactions, including invoices and receipts, for a minimum of five years.

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Cape Verde VAT Compliance: Quarterly Filing, E-Invoicing, and Expert Guidance

When it comes to compliance, businesses in Cape Verde are required to file VAT returns quarterly and make payments by the 20th of the following month. It’s crucial to maintain records for all transactions, including invoices and receipts, for a minimum of five years. Additionally, Cape Verde mandates e-invoicing, which simplifies the process and ensures accuracy. To ensure seamless compliance, it’s highly recommended to partner with a qualified tax professional who can guide you through the specific regulations and deadlines.

For SaaS businesses operating in Cape Verde, staying informed and adhering to the VAT regulations is crucial for smooth operations. Taking advantage of e-invoicing streamlines the process and minimizes errors. Partnering with a knowledgeable tax professional can provide valuable support and ensure your business remains compliant with evolving regulations.

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