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; as the provider is a non-resident entity, the liability to assess the VAT due is the responsibility of the acquirer through the reverse charge mechanism.
- They are purchased by private individuals who use and enjoy the services in Angola. In these cases, the supplier should register for VAT in Angola in order to charge the VAT due.
Although the VAT Code foresees VAT registration for non-resident entities, Angolan tax offices do not accept such registration and argue that foreign entities must be permanently established in Angola 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: the acquirer through the reverse charge mechanism |
| VAT rate | Standard VAT regime — 14% on invoices Simplified VAT regime (turnover up AOA 350,000,000) — 7% on receipts VAT exclusion regime (turnover equal to or less than AOA 25,000,000) — No VAT |
| Taxable value | The price payable or paid |
| Effective date | 1 October 2019 |
| VAT registration threshold | Above AOA 25,000,000 |
| Tax invoice | A tax invoice must be provided. The legislation allows electronic invoicing; however, it is not yet regulated. |
Services in scope
There are no specific rules for ESS.
Registration and compliance
As mentioned above, the Angolan tax authorities are not accepting VAT registration for non-resident entities and require that branches be set up.
Invoicing
As mentioned above, the legislation allows electronic invoicing. However, this is not yet regulated.
Note that taxpayers with an annual turnover equal to or less than AOA 25,000,000 may issue invoices through the taxpayer website (not qualifying as electronic invoices, at least to date).
The Legal Regime for Invoices and Equivalent Documents states that all invoices and equivalent documents must be written in Portuguese and must be issued by a certified software system.
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 kwanzas
- Total price in kwanzas
- Applicable tax rates (when applicable)
- Tax amount due (when applicable)
- The justification for the non-settlement of VAT, with an indication of the legal norm underlying it (when applicable)
- The date and place at which the goods were delivered to the buyer and/or the services were provided (not applicable in case of advance receipts)
- The date on which advance payments were made (if applicable)
- Written in Portuguese
- Identity of the computer system used to issue the invoice and its certification number
VAT on costs
Non-resident entities cannot recover VAT incurred on acquisitions of goods/services in Angola.
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