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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

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.