Angola delays VAT till Oct 2019

The July launch of VAT in Angola has been delayed until 1 October 2019. The new 14% Imposta sul Valore Aggiunta (IVA) consumption tax replaces the existing Consumer Tax, levied on the supply of goods and services as well as on the import of goods into Angola. The Consumer Tax rate ranges from 2% to 30%, depending on the goods or service. 

IVA will initially apply to large taxpayers with annual turnover of 15m kwanzas. Basic commodities, insurance, banking, and financial operations will be exempt, and exports of goods and services will be zero-rated.

The Angolan Government will adopt 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

Angola is one of the last African states to introduce VAT.