1.201companies willingly adhere to VAT

In an interview given to Jornal de Angola public daily newspaper, published on its edition of October first, the General Tax Administration (AGT)’s coordinator for the implementation of VAT, Adilson Cerqueira, explained that for companies that voluntarily joined the new process, the requirement is to have an accountant certified by the Accountants Order and Accounting Experts of Angola (OCPCA).

He also mentioned that these companies should charge Value Added Tax through one of the AGT-validated invoicing software and which have AGT approval for the General VAT Regime (there is a list posted on the AGT website).

The list of taxpayers who have applied to join the General Scheme and approved by the AGT for VAT collection, whose rate is 14%, will be updated frequently on the AGT website.

It was clarified that, all contributors of this General Scheme are required to electronically submit, by 31 January 2020, the invoices report files for the months of October, November and December 2019.

On the other hand, in February 2020 the transitory taxpayers regime must equally submit their invoices report files regarding January 2020 and so forth.

The Goods and Services Procurement File (with or without VAT) is submitted together with the list of Providers of Periodic Declaration for General Regime contributors and the Map for Transitional Regime contributors as from the month of November this year, relating to October 2019.

Due to the fact that the electronic component tool will not yet be accessed by the great majority of the taxpayers, Adilson Sequeira informed that the contributors that are to submit their tax reports every month electronically are the ones registered as Big Taxpayers, which must submit the Corporation Tax and the VAT declarations electronically.

Adilson Cerqueira stated that AGT is meeting the conditions for the creation of VAT taxpayer support bureaus in the various tax regions.

Therefore, he highligthed that te levy of the VAT mandatorily occurs in an AGT validated software. This tax validation (certification) allows AGT to control accounting systems used within the country, and even control tax evasion and tax fraud.

To date, AGT has received 245 applications for tax validation from software producers, of which 165 have been validated, he mentioned.

In this first phase, the VAT its only charged by 421 Major Taxpayers and other 201 companies of the General Regime that voluntarily joined the process.

The 1,600 registered companies as Big Taxpayers and others that adhered voluntarily to the general regime are liable to suffer a penalty of 7 to 15% of the traded VAT value if they do not issue invoices five days after the transfer of goods or services.

Such a tax, levyed on locally produced and imported goods and services, could have come into force first in January and then on 1 July last, but national entrepreneurs requested a moratorium because they were not properly prepared.

With the entry of this tax into the Angolan tax system, the Executive intends to broaden the tax base, increase tax revenues and improve the competitiveness of the economy.

The 14% tax rate is below the average of the 15% charged at SADC regional block members.

Source: Angola Press News Agency