Tax rate by region Cape Verde

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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.

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.

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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

No

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

How-To Guides: Cape Verde SaaS VAT

Step: 1 Threshold

Cape Verde introduced VAT on digital services through Law 4/X/2021 (effective 1 January 2022), establishing a special regime for non-resident providers of electronic services.
No VAT/GST registration threshold for non-resident digital service providers — registration is mandatory if providing taxable services in Cape Verde (no minimum CVE amount). 

Step: 2 Business Registration

Register with the Direção Nacional de Receitas do Estado (DNRE) — the national tax authority. Non-resident entities must appoint a local legal representative to fulfil obligations.

Step: 3 TIN/VAT Number

VAT registration issue the NIF (Número de Identificação Fiscal) used as the tax/VAT ID by Direção Geral dos Impostos (DGI), part of DNRE

Step: 1 Standard VAT Rate

Standard VAT rate 15% applies to SaaS/digital services supplied into Cape Verde.

Step: 2 VAT Formula

To calculate your tax amount, consider the following formula:

 

Tax Amount = Net Price x 15%

 

Step: 3 Reverse Charge (B2B)

The general Cape Verde special VAT regime for electronic services does not distinguish B2B and B2C under the e-commerce regime; VAT is typically charged by the non-resident provider once registered. However, local practice may allow a reverse charge in certain B2B scenarios if the recipient is responsible under domestic VAT rules (confirm with local counsel).

Step: 1 Selling B2C

Non-resident providers must register and charge VAT at 15% on digital services sold to Cape Verde private consumers once included on the official e-commerce operator list.

Step: 2 Selling B2B

Similar to B2C under the special regime — VAT registration is required and VAT is charged; in practice a reverse charge mechanism could be applied for purely B2B (confirm with local authorities).

Step: 3 Invoice Requirements

Invoices must include:

  • Supplier name & VAT/NIF
  • Customer name & VAT (if applicable)
  • Unique sequential invoice number
  • Date of issue
  • Description of services
  • Net amount, VAT rate (15%), VAT amount
  • Total amount payable
  • Reason if VAT is not charged.

Step: 1 Filing Interval

Quarterly VAT returns are required for the special e-commerce VAT regime.

Step: 2 Filing Deadline

VAT return and payment due by the 20th of the month following the quarter end (e.g., Q1 by April 20).

Step: 3 Submission

Returns and payments submitted via DNRE’s e-filing system (online portal). E-invoicing (electronic invoicing) is mandatory for all VAT-relevant transactions.

Step: 4 Record Keeping:

Maintain records (invoices, tax documentation) for at least 5 years; electronic records are required.

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Cape Verde 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.

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