Angola

Scope of VAT

VAT applies on:

• supply of goods: the transfer of the right to dispose of tangible property as owner

• supply of services: as a residual concept it includes all operations carried out that are not a supply of goods or an importation of goods or money

• import of goods: the entry of goods into the territory of the country is in accordance with the customs legislation.

The following persons are liable for the payment of VAT:

• any person carrying on an economic activity on an independent basis

• importers (in accordance with the customs legislation)

• any person who unduly charges VAT on an invoice

• any person that is a purchaser of services from non-resident entities

• the state, except when acting within its power or authority and from which competition distortion does not result.

Standard regime

All entities with a turnover or goods import operations higher than AOA350,000,000 are liable to the standard VAT regime. These taxpayers and those that choose to be framed in the standard regime should assess VAT on the supplies of goods and services and, in principle, are able to deduct the VAT incurred on their purchases.  

Entities operating in the manufacturing industry are always obliged to be on the standard VAT regime. However, the entities operating in the manufacturing industry whose turnover or import  of goods are less than AOA10,000,000 can be excluded from the standard VAT regime.

The taxpayers subject to this regime should:

• assess VAT on invoices issued

• file a monthly VAT return and pay the VAT amount until the last working day of the month following that to which the transactions relate and file all the respective annexes of the VAT return

• have organised accounting according to Angolan PGC (Angolan GAAP).

Stamp Tax

When carrying out operations exclusively VAT exempt, without the right to deduct, taxpayers are required to pay Stamp Duty on receipts, at a rate of 7%. International air transport of passengers and rental of real estate are subject to a 1% rate.

Simplified regime

Taxpayer whose turnover or goods import operations is equal to or less than AOA350,000,000 fall under the simplified regime.

According to this regime, taxpayers must pay, on a quarterly basis, an amount of VAT corresponding to 7% of the amount received from non-exempt transactions, including advance payments, less 7% of the total VAT incurred.  When acquiring services from non-resident entities, must self-assess VAT at the rate of 7%.

Stamp Tax

Taxpayers under this regime must pay Stamp Duty on receipts, of transactions that, under the standard VAT regime would be VAT exempt, at a rate of 7%. International air transport of passengers and rental of real estate are subject to a 1% rate.

The Stamp Duty paid is a cost deductible for corporate income tax purposes.

Taxpayers under the simplified regime may opt to be included in the standard VAT regime if all the following requirements are fulfilled:

• organised accounting according to Angolan PGC (Angolan GAAP)

• absence of tax and customs debt

• registration duly updated in the system of the General Register of Taxpayers

• issuance of invoices/equivalent documents through certified billing software

• submission by electronic transmission of data regarding the VAT returns, as well as the elements of its accounts.

When changing from the simplified to the standard VAT regime, an entity is allowed to deduct the VAT incurred on goods to be sold that have been acquired in the 12 months preceding the change and upon authorisation from the Angola Tax Authorities.

Non taxation regime

VAT rates

The general VAT rate is 14%.

However, the following reduced VAT rates are applicable to a specific set of transactions:

• 2% On imports and supplies of goods in the Province of Cabinda. This rate was introduced by Law No. 22/19 of 20 September 2019 (Special Regime of Cabinda), and

• 7% for the provision of hotel and restaurant services. For the entities to apply this reduce rate, the following requirements must be met: registration of real estate and motorised vehicles for the development of the activity; issuance of invoices through electronic means; filing of tax returns of the previous tax years;

• 5% and 7% for certain foodstuffs and other products.

VAT registration

Compulsory registration

Voluntary and group registration

Non-residents

Non-resident entities without a permanent establishment in Angola who carry out transactions liable to VAT in Angola to private individuals (which cannot self-assess VAT) shall register in Angola and appoint a resident legal representative. The legal representative and the non-resident entity are jointly liable to the Angolan Tax Authorities.

Application for registration

Deregistration

Input tax deduction

Input tax allowed

Taxpayers are allowed to deduct VAT of goods and services used for the purposes of the taxed taxable or zero-rate transactions.

VAT deduction is only allowed if the taxpayer holds the relevant invoice or equivalent document dully issued.

VAT deductions is blocked in relation to the following expenses:

• acquisition, manufacture or import, utilisation, transformation and repair of passenger vehicles, pleasure boats, helicopters, aircraft and motorcycles

• acquisition or import of tobacco

• accommodation, meals and transport expenses, including those related to the reception of business visitors and the expenses related to buildings or part of buildings and their equipment, intended principally for such reception.

However, input tax is allowed when they relate to goods or services whose supply constitutes the main activity of the taxable person.

Partial exemption

Oil investing companies

Input VAT deductions is denied for oil investing companies, in relation to the following expenses:

• supply of water and energy

• services related to electronic communications and telecommunications

• accommodation services.

In production phase, VAT deduction is also denied in relation to:

• lease of equipment, except if it arises in the payment of royalties

• consultancy, legal, tax, financial, accounting, and Information Technology (IT) services

• security services

• lease of vehicles.

Output tax

Brief description of output tax

Output tax is calculated by applying the applicable VAT rate to the taxable value.

In Angola, there is a captivation regime (withholding VAT) which consists of VAT being withheld by recipient of goods/services in determined sectors:

• 100% captivation — by the state (except public companies) and oil investing companies

• 50% captivation — Angolan National Bank, commercial banks, insurers and reinsurers and telecommunication operators

The General Tax Administration (Administração Geral Tributária or AGT) can decide on the inclusion or exclusion of taxable persons from the obligation to captivate VAT, whenever justified reasons of protection of public revenues exist.

There are some goods/ services not subject to the captivation regime, for instance, transmissions of goods made by supermarkets or services provided by commercial banks.

VAT Exempt supplies

The following supplies of goods and services are VAT exempt:

• medicinal products intended exclusively for therapeutic and prophylactic purposes

• wheelchairs and similar mobility aids for the disabled, typewriters and printers for braille characters and articles to be used by the blind

• books, including in digital form

• leasing of immovable property for residential or commercial purposes, in particular urban buildings, separate parts thereof or building lands, with the exception of the supply of services of accommodation services provided in the course of hotel activity

• transactions subject to property transfer taxes (SISA), even if exempted

• games of chance and of social entertainment, as well as the respective commissions and all related transactions, when they are subject to Special Tax on Games

• collective transport of passengers

• financial intermediation operations, including financial leasing, except for those where a specific and predetermined fee is charged for the service (Annex III)

• health and life insurance, as well as its reinsurance

• petroleum products, in accordance with Annex II of the VAT Code

• services related to education

• medical services realised by hospitals, clinics and similar organisations

• transport of sick or injured people in ambulances or other appropriated vehicles by duly authorised organisations

• medical equipment for the exercise of the activity of health establishments.

Zero-rated supplies

The following supplies of goods and services are Zero-rated:

• export of goods

• supply of goods for vessels used for navigation on the high seas and carrying passengers for reward, or used for the purpose of commercial, industrial or fishing activities

• supply of goods for aircrafts used by airline companies mainly engaged in international traffic and used to carry passengers for reward, or used for the purpose of a commercial or industrial activity

• supply of goods for rescue vessels, maritime assistance, coastal fishing and war vessels, when they leave the country for a foreign port

• supply, transformation, repair, maintenance, freight and leasing of vessels and aircrafts, as well as the supply of goods and the supply of services made in order to satisfy their direct needs and the respective load and of goods to certain international entities

• supply of goods under international treaties and agreements to which Angola is a party, when the exemption results from them.

International trade

Imports

Goods

Goods imported into Angola are subject to VAT. 

The following import of goods are VAT exempt:

• goods that are exempt if supplied within the country

• gold, coins or banknotes, produced by the Bank of Angola

• goods for philanthropic purposes or to mitigate the effects of natural calamities, namely, droughts, floods, storms, cyclones, earthquakes, pandemics and others of identical nature, provided that the respective purpose is duly recognized by the AGT

• foreign currency performed by the banking financial institutions

• goods or equipment intended for the exclusive or direct execution of petroleum and mining operations, under the law that establishes the Customs Regime for the Petroleum Sector and the Mining Code respectively

• goods by entities under projects of international cooperation.

Services

Services acquired by an Angolan taxpayer from foreign suppliers are liable to VAT, to be reverse-charge by the acquirer, except for:

• services related to immovable property located outside Angola

• services in relation to movable tangible goods performed totally or mainly outside Angola

• leasing of motor vehicles, aircraft, pleasure boats or any other transport vehicles, made available outside Angola

• artistic, scientific, sporting, recreative and teaching services, including those of the organisers of these activities and accessory supplies, that take place outside Angola.

Exports 

Goods

Exports of goods are zero-rated.

Services

Services provided to foreign taxpayer are not liable to VAT, except for:

• services related to immovable property located in Angola

• services in relation to movable tangible goods performed totally or mainly in Angola

• leasing of motor vehicles, aircraft, pleasure boats or any other transport vehicles, made available in Angola

• artistic, scientific, sporting, recreative and teaching services, including those of the organisers of these activities and accessory supplies, that take place in Angola

Nonetheless, services used or whose effective exploitation occurs in Angolan territory are liable to VAT in Angola, even if the acquirer is non-resident in Angola.

Place, time and value of supplies

Place of supply

The place of supply of goods is the place where the transport of the goods to the customer begins or, in the case no transport occurs, the place where the goods are made available to the acquirer.

The place of supply of services is the place where the acquirer has established their business or has a fixed establishment.

Exceptions to the above rules include:

• services connected with immovable property located outside Angola — the place where the property is located

• services relating to movable tangible property performed totally or mainly outside of Angola — the place where the service takes place

• cultural, artistic, sporting, scientific, educational, entertainment or similar activities, performed outside of Angola — the place where the service takes place

• transport services — distance travelled in Angola

• services used or whose effective exploitation occurs in Angolan territory.

Time of supply

The chargeable event shall occur, and VAT shall become chargeable when the goods or the services are supplied.

When the supply of goods and services is made under a contract that foresees periodic and successive payments, the supply is regarded as being completed on expiry of each period.

When the supply of goods and services give rise to an invoice, VAT is due at the time the invoice is issued or until the end of the deadline for its issuance (fifth working day following the operation that caused it) if it is not met.

Value of supply

The taxable amount includes everything that constitutes consideration obtained or to be obtained by the supplier in return for the supply from the customer or a third party (including any taxes and duties other than VAT, and expenses related to commissions, packaging, transport and insurance paid on behalf of the customer).

In respect of the importation of goods, VAT is charged on the customs value, determined according to customs legislation, added to the following elements, to the extent that they are not yet included in the customs value:

• import duties, taxes or fees due on import, with the exception of VAT itself

• ancillary expenses such as packaging, transport, insurance and other charges, including any port or airport charges incurred, which take place up to the first place of destination of goods within the country.

VAT compliance

Accounting basis and tax period

The accounting must be organised in such a way as to make it possible to know clearly and unequivocally the elements necessary for the VAT calculation, as well as to allow for its control, containing all the data necessary for the filing of the periodic VAT return.

VAT returns are submitted on a monthly basis, both for the standard VAT regime and the simplified VAT regime.

Returns and payment of VAT

The VAT return comprises a cover page, a suppliers annex and regularisation annexes.

VAT returns must be submitted until the last working day of the month following that to which the transactions relate to. 

If a “VAT to be paid” is calculated, the VAT must be paid until the last working day of the month following that to which the transactions relate to. 

If a “VAT credit” is calculated, it may be carried forward to the following month or subject to a refund claim, as further explained below.

Tax assessments, objections and appeals

The tax authorities may issue additional assessments, and taxpayers are entitled to challenge such assessments, under certain conditions.

Taxpayers may claim before the tax authorities (Administrative Claim) or before the Court (Judicial claim).

• interest and penalties:
  • In the case of negligent conduct, the non-payment or late payment of the VAT due is subject to a fine of 25% of the missing VAT amount and Interest is also be applicable
  • delay in submission of the VAT return: 5.862 UCF per infraction
  • delay or missing on the submission of the SAF-T files for purchases and sales : AKZ 300.000
  • In the case of fraudulent behaviour (which is presumed), the fine doubles.
  • If the taxpayer proceeds with a supply of goods or services with no invoice or equivalent document support, the fine may be:
    • 7% of the value of the invoice not issued
    • 15% of the value of the invoice not issued, in the case of repeated failure.

Time limits

The status of limitation is five years.

After the notification of an additional assessment, the tax liability has a limitation period of ten years.

VAT refunds

VAT refunds may be submitted if:

• Its amount is higher than UCF 3.409 (1 UCF = AOA 88);

• The VAT credit persists after three months.

• the tax credit situation results from the carrying out of exempt transactions that grant the right to deduct; 

• the taxpayer becomes part of the non-subject VAT regime may request a refund when, or

• there is cessation of activity.

VAT refund are only accepted if the following conditions are meet:

• the taxpayer is not in a situation of declaratory failure, relating to VAT, excise taxes, income taxes and property taxes, with reference to previous tax periods

• the taxpayer has reported electronically all the invoices issued and received in the previous period or periods and there are no discrepancies

• the taxpayer has reported electronically the SAF-T file related to the previous period or periods and there are no discrepancies

• existence of a bank account held by the taxpayer, confirmed by the relevant banking financial institution established in Angola and the banking financial institutions shall indicate the corresponding availability account with the Bank of Angola

• the input tax does not relate to a taxable person with a non-existent or invalid tax identification number, with the exception of transactions where the tax is payable by purchasers, nor to taxable persons who have suspended or ceased their activity in the period to which the tax relates and are not listed in the annex of suppliers.

The refund, when due, must be made by the Tax Authority until the end of the third month following the submission of the respective request. The Tax Authority may suspend this period for 30 days from the date of receipt of the notification when, due to facts attributable to the taxpayer, it is not possible to assess the legitimacy of the refund requested.

The Refunds, once confirmed, are granted in cash or tax credit certificate to be issued by the Angolan Tax Authorities.

VAT record-keeping

Specific VAT rules

Bad debts

Leasing

Promotional gifts

Secondhand goods

Currency conversion

Transfer of business

Additional information related to VAT

Legal Regime of Invoices and Equivalent Documents 

For VAT purposes, invoices must be issued no later than the fifth working day following the date of the supply of the goods or service.

Invoices must be written in the Portuguese language and contain the following references:

• name, address and tax registration number of the supplier and customer

• date and unique sequential number

• description of the goods supplied or services rendered with an indication of their quantity

• unit and total price in Kwanza

• VAT rate(s) applied and the corresponding VAT amount(s)

• if no VAT has been applied, specific indication of the reason for not charging VAT

• the date and place where the goods were put at the disposal of the purchaser, where the services were provided, and where applicable, the date on which advance payments are made

• date of issue

• identification of the IT system used for the issue of the invoice or equivalent document, as well as where applicable, the respective certification number.

Credit notes

Credit notes are used in the case of the cancellation or reduction of the value of a past operation, adjusting the relevant value. Credit notes must comply with various requirements applicable to invoices, must always make reference to the invoices to which they relate, and must explicitly mention the amendment. The rules applicable to credit notes apply to debit notes as well.

VAT may or may not be included on credit notes. Usually, the inclusion of VAT on credit notes does not have a financial effect.

Withholding of VAT by commercial banks, in the processing of payments by card

Commercial banks involved in the processing of payments by card, through POS (Point Of Sale), related to supplies of goods and service are obliged to withhold 2.5% of each payment.  This amount must be transferred directly to the State, within 24 hours after the closing of the accounting period of the automatic payment terminals; the remaining amount is transferred to the retailer’s bank account.

Retailers may deduct the total amount of the VAT withheld in their VAT return, as a payment on account.

Other indirect taxes

Import duties

Customs duties

Customs duties are levied on imports at ad valorem rates varying from 2% to 70%.

Listed equipment may be imported temporarily if a guarantee is provided in favour of the Angola Tax Authorities. In addition, a 2% customs fee is due on importation.

The export of goods that are not produced in Angola is subject to customs duties at the rate of 20% plus customs fees (at rate of 0.5%) computed on the customs value, with the exception of goods covered by the Customs Regime Applicable to the Petroleum and Mining Sectors. A special exemption regime applies for the oil industry.

Update of the customs duties and rates applicable to certain products as per Annex II of the State of Budget of 2022.

Excise duties

Excise duty entered into force in Angola on 1 October 2019.

It was published, Law No. 16/21, of July 19 – Excise Duty Law, which revokes Laws No. 8/19, of 24 of April and No. 18/19, of 13 August.

All production, imports, and sales by public auction are subject to excise duty, with rates of 0%, 2%, 3%,4%, 5%, 8%, 15%; 19%, 20%, 25% and 50%, depending on the product. 

The excise duty code covers operations with the following products:

• sugar and alcoholic beverages

• tobacco and its derivatives

• fireworks

• jewellery and goldsmith articles

• aircraft and pleasure craft

• firearms

• art objects, collages and antiques

• petroleum products

• vehicles

• plastic bags and straws

• tyres, as specified in the table of Annex I of the Excise Duties Code.

Producers are required to assess the excise duties when goods are made available to purchasers/clients and should be submitted in duplicate and electronically, until the last day of each month.

The Excise Duties Code also provides for some exemptions, including:

• exports by the producer itself

• goods imported by international organisations

• raw materials for domestic industry

• goods intended for laboratory and scientific research purposes

• personal goods defined by customs legislation

• goods intended for education

• goods intended for consumption as provisions for any means of collective transport of passengers with international traffic;

• products sold on board of collective transport of passengers for international traffic

• electric vehicles.

The tax stamp is mandatory, according to the model approved by a specific Diploma, to manufactured beverages, tobacco and its substitutes, referred to in Annex I of this Law. 

The establishments that produce beverages, tobacco, and its manufactured substitutes and petroleum products, referred to in Annexes I and II of this Law, must be equipped with a counting and measuring system for electronic transmission of data to the AGT in an automatic manner of information related to production.

The counting and measurement systems referred to above must be certified by AGT, under the terms to be regulated. 

The lack or delay in the electronic submission required implies the payment of a fine of Kz: 300,000.