13 November 2018 Angola delays introduction of VAT to 1 July 2019 At the end of 2017, the Angolan Government proposed the introduction of Value Added Tax (VAT) in the general state budget for 2019, which comes into force on 1 January 2019.1 Accordingly, VAT was to be introduced on 1 January 2019, replacing the exiting consumption tax of 10%. The latter is a non-deductible tax charged throughout the production chain, resulting in a compounding of the tax levy and discouraging internal manufacturing development. However, due to a delay in the readiness of the new e-invoice clearing system, the Angolan Government has announced that the introduction of VAT and elimination of the existing consumption tax will be delayed until 1 July 2019. The new VAT, when implemented, will be 14%, with nil rating on foodstuffs and other essentials. 1 See EY Global Tax Alert, Angola to implement VAT in 2019 Angola to implement VAT in 2019, dated 19 June 2018.
Document ID: 2018-2273 |
