Angola introduces 14% VAT Jan 2019
- Jun 20, 2018 | Richard Asquith
Angola is to replace its existing 10% Consumption Tax regime with a 14% Value Added Tax system from 1 January 2019. Until the start of 2021, this will be mandatory for large taxpayers (turnover exceeding AOA 50 million) only and voluntary for small taxpayers. It will be compulsory for all from January 2021.
It is anticipated that more goods and services will be held liable to VAT than Consumption Tax. However, no formal VAT code or implementation guidance has yet been published.
The country is seeking to broaden its revenue sources, and become less dependant on volatile oil duty revenues. The country's debt levels ballooned following the 2014 oil price collapse. Like the Arab Gulf States, this has led it to introduce VAT as a more reliable state income source.
Angola is the last country in the Southern African Development Community to introduce VAT.