According to a release from the Angolan National Assembly, Angola's new VAT (IVA) regime has been approved for implementation. The new regime includes a standard VAT rate of 14% which replaces the current 10% consumption tax (previous coverage). For small taxpayers with annual revenue below USD 250,000, a 50% reduced rate will apply (i.e., a 7% rate). The regime also includes certain exemptions, including for basic foodstuffs, certain fuel products, and certain financial/intermediation services.
The regime initially applies from 1 July 2019 for large taxpayers and imports of goods and will be transitioned in for other taxpayers with full implementation from 1 January 2021. Taxpayers not initially required to apply the regime are to be allowed to opt in voluntarily if meeting certain accounting and IT conditions.
Additional details on the final regime as approved will be published once available.
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