Turnover separates general regime and non-VAT rules

Luanda – Taxpayers who have an annual income below or equal to 60 million Kwanzas (US $ 250) will be under Non-Taxation of Value Added Tax (VAT).

These businesspeople are exempt from the VAT settlement on their invoice. And the non-deduction of this tax will prevent the request of the respective refunds, according to the technical coordinator of the implementation of VAT in Angola, Adilson Sequeira.

The official of the General Tax Administration (AGT), who was speaking at a press conference, during the IMF’s second technical assistance visit to implement this legislation in the country, said that the companies’ linear (turnover) to separate the general VAT system from that of non-subjection to VAT.

Adilson Sequeira pointed out that the linear value limit is the basis of the Micro, Small and Medium Enterprises Act, within the framework of its protection.

“Anyone above this (linear) value will be in the VAT regime,” said the tax technician, stressing that the two regimes (general and non-subjection) will operate as from 2021.

What is intended, according to him is to ensure that, in 2019, the regime of non-subjection is maintained for those who are below the linear and have the general regime, as an unofficial form, an obligation for entrepreneurs who are large taxpayers.

To him the process provides for a transitional period of two years, from 2019/2020, a stage in which will give the companies the possibility to make the decision according to their technical conditions, accounting, as well as at the register level.

Anyone who has these conditions may apply for his tax break to enter the general scheme, thus benefiting from the same treatment as is given to the class of large taxpayers.

The VAT implementation code comes to public consultation during the month of August in the country’s 18 provinces.

Source: Angola Press News Agency