VATupdate

VAT rates in Angola

Quick overview

Standard Rate Reduced Rate Other Rates
14% 5% Zero-rated (0%) and exempt

The local name for VAT in Angola is Imposto sobre o valor acrescentado (IVA).

There are basically 2 VAT rates in Angola:

  • Standard VAT rate is 14%
  • Reduced VAT rate is 5%

There is also a 2% VAT rate that is applicable to import of specific goods and to the following supplies in the province of Cabinda.

Recent developments

For more information about (recent) rate change developments in Angola, please click HERE.

Standard rate: %

This rate applies for all transactions that take place in Angola, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).

Reduced rate: 5%

Examples of goods and services taxable at 5%

  • Basic basket products, including products such as milk, beans, rice, wheat flour and maize, food oil, sugar cane and soap
  • Agricultural inputs, including goods such as horses, live animals (bovine, swine, ovine and caprine animals), poultry, seeds, wheat, rye, barley, oat, corn, fertilizers, farming tools, barbed wire, tractors.

Zero rate (0%)

Examples of goods and services taxable at 0%

  • Exports:
    • Dispatched to a foreign country by the seller or someone acting on their behalf
    • Repair, maintenance lease and other operations relating to the ships identified above as well as for aircrafts used by companies that develop cross-border traffic activities
    • Supply, conversion, repair, maintenance, freight and rental, including leasing, of vessels and aircraft affected to air and sea navigation companies that are principally engaged in international traffic, as well as the transmission of supply goods placed on board the referred vessels and aircrafts, as well as services rendered to meet their direct needs and those of its cargo
    • Supplies of goods destined to international organizations recognized by Angola or to members of the same organisms within the limits and with the conditions established in international agreements concluded by Angola
    • Transport of passengers, cargo or mail proceeding from abroad

Examples of exempt supplies of goods and services

Thee term “exempt supplies” refers to supplies of goods and services that are not liable to VAT and that do not qualify for input tax deduction.

  • Medication and other related products for therapeutic and prophylactic ends
  • Wheelchair and similar vehicles destined for people with disabilities as well as braille machines and other gadgets used to correct learning disabilities
  • Books
  • Leasing and letting of immovable property (excluding financial leases and the accommodation services provided by hotels and entities with similar activity)
  • Collective public transportation services
  • Banking and financial operations carried out by banking financial institutions and nonbanking financial institutions, including the financial leasing, apart from these activities if a tax, or a consideration is charged by the service provided
  • Insurance activities
  • Supply of fuels according to Annex II of the VAT Code

 

A global VAT/GST rate overview can be found here (note this is a work in progress).

This post was last updated on August 30, 2021.

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