Angola agrees July 2019 14% VAT implementation
- Feb 26, 2019 | Richard Asquith
The Angolan parliament has approved the implementation of a 14% VAT regime from July 2019. This will replace the existing Consumption Tax, which has no right to deduct through the production chain.
There will be a phased introduction, starting with large tax payers. Small businesses with sales below €220,000 per annum will instead by subject to a 7% VAT rate. The Angolan Government has adopted a "SLIM" approach in the implementation of VAT in Angola, i.e., Simple, Local and Modern:
- Simple, as it should establish a broad scope for the tax, with a reduced number of exemptions and with simplified tax calculations
- Local, as it should be suitable for the Angola's national reality and socio-economic context
- Modern, as it should have a digital component and it should follow the international best practices in dealing with tax fraud and evasion