Overview
According to the Angolan VAT Code, electronically supplied services are subject to VAT, when:
- They are purchased by a taxable person established in Angola (B2B). In this case, the local Angolan business is required to self-account for VAT under the reverse charge mechanism;
- They are purchased by private individuals (B2C) which use and enjoy the services in Angola. In these cases, the non-resident supplier should register for VAT in Angola to charge the VAT due.
From a legislative perspective, when supplying B2C electronic services, non-resident suppliers should be able to register directly for VAT purposes. This VAT registration requires the non-resident supplier to appoint a local tax representative, who is jointly and severally liable for the payment of the tax. In this scenario, non-resident suppliers are required to issue invoices in accordance with the Angolan VAT rules, charge VAT, and file VAT returns.
However, the Tax Authority is not accepting declarations of commencement of activity where the non-resident supplier declares itself to be a taxable person solely for VAT purposes. Instead, the Tax Authority is requiring the non-resident supplier to also register as a taxpayer for corporate income tax (CIT) purposes, which triggers an obligation to file CIT returns.
This approach carries a significant risk from a CIT perspective, as the Tax Authority is likely to presume that the amounts invoiced for VAT purposes constitute taxable income for CIT purposes.
Key provisions applicable to VAT on ESS
| Particulars | Description |
| Scope | B2C when used and enjoyed in Angola, and B2B. |
| Liability to remit VAT | B2C: The supplier B2B: Acquirer through the reverse charge mechanism |
| Standard VAT rate | 14% on ESS |
| VAT regime | Standard VAT regime (turnover above AOA 350,000,000 – circa USD 380,000): this regime applies to local entities with an annual turnover. Under this regime, taxpayers are required to issue invoices and charge VAT at standard rate -14%.
Simplified VAT regime (turnover between AOA 25,000,000 and AOA 350,000,000 i.e. between USD 27,000 – USD380,000). Under this regime, taxpayers must issue invoices without VAT but pay 7% on the total turnover received. |
| Taxable value | The price payable or paid |
| Effective date | 1 October 2019 |
| VAT registration threshold | Above AOA 25,000,000 (circa USD 27,000) |
| Tax invoice | A tax invoice must be provided. Since 1 January 2026, electronic invoicing has been in force. |
Services in scope
There are no specific rules for ESS. As such, the services supplied by non-resident suppliers to Angolan customers, whose effective use and enjoyment take place within Angolan territory, are subject to VAT in Angola.
Registration and compliance
A declaration of start of activities must be filed before the beginning of the activity.
As mentioned above, the Angolan tax authorities are not accepting non-resident entities to register solely for VAT purposes. Therefore, the non-resident supplier should appoint a local tax representative to carry out its VAT obligations and register as a taxpayer for CIT purposes.
Once registered for VAT in Angola, the non-resident supplier must complete and submit VAT returns on monthly basis, by the 15th day of the second month following that in which the transactions giving rise.
However, in practice, given the complexities associated with CIT registration and appointing a tax representative, we have not yet seen any non-residents registering for VAT in Angola.
Invoicing
Since 1 January 2026, electronic invoicing is mandatory for the following entities:
- Taxpayers registered with the Large Taxpayers Tax Office
- Suppliers to the Angolan State (public bodies); and
- Taxpayers issuing invoices for supplies of goods or services valued at 25 million Angolan Kwanzas (AOA) or more. For these taxpayers, the option to issue electronic invoices is optional. Alternatively, invoices may be issued through the taxpayer portal, with a limit of up to 300 invoices per year.
All other taxpayers may continue to issue invoices in paper.
From October 2026 onwards, electronic invoicing will be mandatory for all taxpayers registered in Angola under the standard and simplified VAT regimes.
Note that taxpayers with an annual turnover less than AOA 25,000,000 (circa USD 27,000) may issue invoices through the Taxpayer website (not qualifying as electronic invoices, at least up to date).
The New Legal Regime for Invoices states all invoices, and equivalent documents must be written in Portuguese and must be issued by a certified software system.
The invoices and equivalent documents issued must contain the following elements:
- Name
- Address
- Tax identification number
- Sequential and chronological numbering by type of document and economic year
- Description of the goods sold and services rendered
- Quantities or units purchased
- Unit price in Angolan Kwanzas
- Total price in Angolan Kwanzas
- Applicable tax rates (when applicable)
- Tax amount due (when applicable)Unit and total price written in words
- The justification for the non-settlement of VAT, with indication of the legal norm underlying it (when applicable)
- Date hour and place on which the goods were delivered to the buyer and / or the services were provided (not applicable in case of advance receipts)
- Date on which advance payments were made (if applicable)
- Written in Portuguese; and,
- Identification of the computer system for issuing the invoice and its certification number and hash code.
VAT on costs
The entities that are not registered in Angola are not able to deduct VAT incurred on acquisitions of goods / services in Angola. However, where a non-resident entity is registered via a tax representative, it is deemed to be an Angolan entity and, therefore, it will be able to recover any VAT incurred in Angola.
VAT on cryptocurrency/digital assets
Currently, Angola does not have specific VAT rules or regulations relating to cryptocurrency-related activities or digital assets.
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