Law No. 14/23 amending the Value Added Tax (VAT) Law was enacted on 28 December 2023. The proposed amendments specify that the sale of goods in Angola will be taxable if the purchaser has his head office, residence or permanent establishment in Angola. , or if the payment is made within the country (i.e. facilitated by a locally established financial institution), regardless of the origin of the goods (in Angola or abroad).
Therefore, if a non-resident legal entity sells goods from within or abroad to a purchaser whose head office, residence or permanent establishment is in Angola, or if payment is made within the national territory, the sale is considered to be in Angola. and VAT will be applied. Tax rules apply.
The current language of the law suggests that such obligations apply to both business-to-consumer (B2C) and business-to-business (B2B) sales. However, the law does not impose specific compliance obligations on electronic platforms promoting the sale of goods, and it also does not clarify the interaction between VAT rules and import rules, as VAT is usually assessed during customs clearance. not.
Given the extensive nature of these rules, the Angolan Tax Authority will issue additional implementing regulations, in particular regarding the establishment of a simplified registration mechanism for non-resident companies carrying out electronic commerce (e-commerce) sales in Angola. It is expected that
Other amendments to Law No. 14/23 include:
- Charging VAT on gambling – the taxable amount must equal the amount paid for accessing or participating in the game, excluding winnings
- We will increase the VAT credit threshold for refund requests to AOA 700,000 only if the taxpayer has maintained the VAT credit for more than three months.
- Exclusion of transactions between the National Bank of Angola, commercial banks, insurance and reinsurance companies, and telecommunications carriers with universal title from the VAT withholding mechanism
- Allow VAT deduction within 12 months after issue of invoice or receipt of import tax payment
- Failure or delay in filing periodic returns will result in a penalty of AOA 600,000 for each violation.
- If the missing VAT return is not submitted, the penalty will double every three months.
- Requires banks to electronically submit quarterly files summarizing operations performed at automatic payment terminals (APTs)
- Entitles taxpayers under the simplified VAT regime to deduct only 10% of the total tax amount, with the remaining 90% eligible for deduction under the income tax regime.
- Requiring taxpayers under the simplified VAT regime to electronically submit supporting documents to their monthly simplified returns containing information on work carried out in the previous month.
The amendments to the VAT Act came into force on 28 December 2023, but tax authorities may consider the effective date to be 1 January 2024.
For more information, contact a KPMG tax expert.
Philippestephanny | philippestephanny@kpmg.com
Ines Pereira |inespereira@kpmg.com
Joan Palma | jpalma@kpmg.com
