The Angolan National Assembly approved a bill enacting the new Value Added Tax ("VAT") Code.
The approved VAT model is a multi-stage tax that encompasses the entire economic chain. Inspired by the European VAT model, the new tax should replace the current Consumption Tax as well as bring about a few adjustments to the Stamp Duty Code.
Among the various amendments envisaged, we highlight the following:
- Significantly broadening of the taxable base, when compared to the current Consumption Tax;
- Single tax rate of 14%;
- Introduction of a deduction mechanism along with rules for VAT refunds;
- Creation of new reporting and registration obligations
VAT will be implemented in two phases: a first phase, applicable to the large taxpayers and other (eligible) entities that opt for immediate application; and a second phase, extending this new regime to all taxable persons.
A transitional regime is also foreseen for entities with a turnover or importations in excess of USD 250,000.00 and that have not joined the first phase.
The new tax is intended to be introduced in Angola as of July 2019.