Tax rate by region Mozambique

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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.

Mozambique’s VAT: A Guide for SaaS and Digital Service Providers

In Mozambique, implementing a VAT system signified a modern tax framework with improved compliance. The standard VAT rate for SaaS and other digital services currently stands at 16%. While a reduced rate exists, it doesn’t apply to digital goods or services. Businesses must file VAT returns either monthly or quarterly depending on their turnover, with payments due by the 10th of the following month. Accurate record-keeping is crucial, including invoices with details, purchase orders, delivery notes, bank statements, cash register records, accounting documents, VAT returns, and VAT calculations. E-invoicing is not mandatory but can be beneficial for streamlining compliance.

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Mozambique

Mozambique implemented a VAT system in 2014 to modernize its tax framework and improve compliance.

Official government link: Autoridade Tributária de Moçambique

16.00%

E-products and services VAT/Sales tax rate

Reduced tax rate product categories

No specific digital goods or services have reduced tax rate

Exempted product categories

No specific digital goods or services are exxempt

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

Registration is necessary regardless of the turnover

Online registration possible

No

Local representative needed

Yes

Registration procedure

Obtain necessary documentation: This includes your company registration documents, identification documents, and other relevant paperwork.
Complete VAT registration form: You will need to fill out the required VAT registration form, providing details about your business activities, address, and contact information.
Submit application: The completed form and supporting documents should be submitted to the local tax office.
Tax office review: The tax authorities will review your application and conduct any necessary verifications.
VAT number issuance: Upon approval, you will be assigned a VAT registration number.  

List of digital and electronic services liable for tax

E-books
Music downloads
Movies and TV shows
Software
Video games
Cloud computing
Web hosting
Software as a Service (SaaS)
Streaming services
Online advertising
Electronic marketplaces
Mobile applications
Online gaming
Digital currencies (with specific tax treatment)

Penalties

Fines: Ranging from a minimum to a maximum amount, often calculated based on the unpaid tax amount.
Interest: Charged on unpaid taxes at a specific interest rate.
Surcharges: Additional penalties imposed for late or incorrect filings.
Imprisonment: In cases of serious tax fraud.

Registration threshold

No threshold 

Filing interval

Monthly or quarterly depending of the turnover

Filing deadline

By the 10th of the next month following the reporting period

E-invoicing requirements

No

Record keeping

Invoices: Both issued and received invoices, including details of goods or services, quantities, prices, VAT amounts, and customer/supplier information.
Purchase orders and delivery notes: To support invoice data.
Bank statements: To reconcile income and expenses.
Cash register records: If applicable.
Accounting journals and ledgers: To track financial transactions.
VAT returns: Copies of filed VAT returns.
VAT calculations: Supporting documentation for VAT amounts claimed as input or output tax.
Correspondence with tax authorities: Any communications related to VAT matters.

How-To Guides: Mozambique SaaS VAT

Step: 1 Threshold

There is no clearly defined registration framework for non-resident digital service providers; obligations depend on general VAT rules and local presence.

 

There is no registration threshold for non-resident providers of digital services.

 

Step: 2 Business Registration

Non-residents must register with the Autoridade Tributária de Moçambique (AT). Non-resident registration is not clearly standardized and typically requires a local tax representative or establishment.

Step: 3 TIN/VAT Number

The tax ID issued is the NUIT (Número Único de Identificação Tributária), issued by the AT.

Step: 1 Standard VAT Rate

The standard VAT rate in Mozambique is 15% (Standard GST).

Step: 2 VAT Formula

To calculate your tax amount, use the following formula:

 

Tax Amount = Net Price x 15%

Step: 3 Reverse Charge (B2B)

It applies to B2B supplies. If the NZ buyer is GST-registered, the offshore supplier does not charge GST. The buyer accounts for the tax via the reverse charge mechanism.

Step: 1 Selling B2C

The supplier charges 16% VAT at the point of sale, collect it from the consumer, and remit it to the AT.

Step: 2 Selling B2B

VAT is not charged by the supplier. The invoice should state that the Reverse Charge Mechanism applies and include the buyer’s NUIT.

Step: 3 Invoice Requirements

Invoices must be in Portuguese (though English is often tolerated by the AT for non-residents) and include:

  • Supplier Name, Address, and NUIT.
  • Buyer Name, Address, and NUIT (for B2B).
  • Sequential Invoice Number (certified sequence).
  • Date of Issue.
  • Description of SaaS/Service.
  • Net Price, VAT Rate (16%), and VAT Amount.
  • Total Amount in MZN (or equivalent with exchange rate).

Step: 1 Filing Interval

Taxes are to be filed monthly.

Step: 2 Filing Deadline

Taxes are to be filed by the 20th day of the following month (e.g., January sales must be filed by February 20).

Step: 3 Submission

Declarations (Form M/10) are submitted via the e-Tributação portal. Payments are made via bank transfer using a generated Documento de Arrecadação de Receitas (DAR).

Step: 4 Record Keeping

Records and copies of invoices must be kept for a minimum of 10 years.

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Mozambique’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

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