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13 November 2018

Angola delays introduction of VAT to 1 July 2019

At the end of 2017, the Angolan Government proposed the introduction of Value Added Tax (VAT) in the general state budget for 2019, which comes into force on 1 January 2019.1 Accordingly, VAT was to be introduced on 1 January 2019, replacing the exiting consumption tax of 10%. The latter is a non-deductible tax charged throughout the production chain, resulting in a compounding of the tax levy and discouraging internal manufacturing development. However, due to a delay in the readiness of the new e-invoice clearing system, the Angolan Government has announced that the introduction of VAT and elimination of the existing consumption tax will be delayed until 1 July 2019. The new VAT, when implemented, will be 14%, with nil rating on foodstuffs and other essentials.

Endnote

1. See EY Global Tax Alert, Angola to implement VAT in 2019 Angola to implement VAT in 2019, dated 19 June 2018.

For additional information with respect to this Alert, please contact the following:

Ernst & Young Angola, Limitada, Luanda
  • Rui Henriques, Global Compliance & Reporting | rui.henriques@pt.ey.com
  • António Pereira, Business Tax Services | antonio.p.homenio.pereira@pt.ey.com
  • Ricardo Veloso, People Advisory Services | ricardo.veloso@pt.ey.com
  • Nelson Sousa, Financial Services | nelson.sousa@pt.ey.com
Ernst & Young S.A., Indirect Tax, Lisbon
  • Carlos Lobo | carlos.lobo@pt.ey.com
  • Amilcar Nunes | amilcar.nunes@pt.ey.com

ATTACHMENT

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