Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| 20% | 5% | Zero-rated (0%), Exempt |
The local name for VAT in Madagascar is Taxe sur la Valeur Ajoutée (TVA).
There are basically 2 VAT rates in Madagascar:
- Standard VAT rate is 20%
- Reduced VAT rate is 5%
Recent developments
For more information about (recent) rate change developments in Madagascar, please click HERE.
Standard rate: 20%
This rate applies for all transactions that take place in Madagascar, 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%
- Locally produced pasta products (
- Imports and sales of butane gas and their containers
Exempted
- Education (incl. books) & training costs
- Financial transactions (interest, transactions related to shares, …)
- Insurance
- Water and electricity by individuals
- Health Services (inc. medicines, lenses, …)
- Newspapers and periodicals
- Stamps and legal currency
- lenses
- Basic food for human consumption (Incl. maize, flour, oil, wheat, rice, paddy, fluorine, milk and food related equipment)
- Seeds (incl. potato seed, corn seed, wheat seed and soybean seed)
- Food and equipment for animals materials
- Public sports equipment
- Equipment for the production of renewable energy
- Air and sea transport of people and goods
- Membership fees and contributions of members of management centers
- Kerosene
- Wheelchairs and other invalid vehicles
- Devices and equipment for hemodialysis
- Denatured flammable ethanol
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on August 31, 2021.
