Briefing document: E-Invoicing in Angola

Executive Summary:

Angola has officially adopted new legislation mandating electronic invoicing (e-invoicing) and other tax compliance measures, primarily through Presidential Decree No. 71/25, published on 20 March 2025. This decree establishes the legal framework for tax invoices for resident taxpayers, aiming to enhance transparency and combat tax evasion. The implementation of mandatory e-invoicing will occur in phases, starting with large taxpayers and government suppliers in September 2025 and expanding to all applicable VAT-registered businesses by September 2026. The new regime also includes an “Award-Winning Invoice” draw to incentivise taxpayer compliance and real-time reporting of invoice data to the General Tax Administration (AGT) via certified software.

Key Themes and Important Ideas/Facts:

Legal Framework and Objectives:

Presidential Decree No. 71/25 establishes the new legal framework for tax invoices and relevant documents in Angola.
It replaces previous decrees on invoicing and auto-invoicing.
The primary objectives are to “enhance transparency and real-time reporting to Angola’s General Tax Administration (AGT)” and to “fight tax evasion.”

Mandatory E-Invoicing Implementation Phases:

The law’s effective date is September 2025, six months after its publication on 20 March 2025.
Phase 1 (Starting September 2025): Mandatory e-invoicing applies to the largest taxable persons and government suppliers. This phase lasts for the first 12 months. Large taxpayers include oil companies, banking, and financial institutions by nature of their business operations.
High-Value Transactions (Starting September 2025): Concurrently with Phase 1, “All invoices for transactions exceeding Kz 25 million (approximately EUR 25,000)” must be issued electronically or via the Taxpayer Portal.
Phase 2 (From September 2026): Mandatory e-invoicing requirements will apply to all taxable persons under the General and Simplified Value Added Tax Regime.
General VAT Regime: Taxable persons with an annual turnover of at least Kz 350 million (around USD 381,000) or manufacturing businesses with at least Kz 25 million (around USD 27,000) of annual turnover.
Simplified VAT Regime: Taxable persons with an annual turnover between Kz 25 million and Kz 350 million.

E-Invoicing Requirements and Certified Software:

Taxpayers under the General and Simplified VAT regimes “must use AGT-validated invoicing software or software provided by the AGT”.
Certified invoicing software must be capable of transmitting “real-time invoice data to AGT and generating a billing SAF-T file.”
SAF-T (Standard Audit File for Tax) is the required format for electronic submission of invoice data.
“The authenticity, integrity and not repudiation of documents issued electronically are guaranteed through the affixing of a digital code defined by the General Tax Administration.”
In cases of technical issues or inoperability, provisions are made for “Emissão em contingência” (contingency issuance), with procedures for later submission to AGT.

Voluntary Participation:

Taxable persons not initially subject to mandatory e-invoicing, such as those under the exclusion regime or smaller businesses, can “voluntarily apply to the e-invoicing system by submitting a request to the General Tax Administration of Angola.”

“Award-Winning Invoice” Draw (Sorteio Factura Premiada):

The decree introduces a draw scheme designed to “fight tax evasion.”
“Taxpayers who report invoices with their Tax Identification Number (NIF) can win prizes.”
Individuals without commercial activity and residential tenants can participate by requesting their NIF be included on invoices.
Invoices not reported by the supplier or landlord can be submitted to AGT by the individual for participation.
Eligible invoices are electronic invoices containing all required elements, including the individual’s NIF, and which have been validly communicated to AGT.
Certain invoices, such as those for electricity, water, banking, insurance, and telecommunications, are excluded from the draw.

Auto-Invoicing (Auto-Facturação):

The decree regulates auto-invoicing, where the purchaser of goods or services issues an invoice/receipt on behalf of the supplier.
This is applicable to entities with accounting systems purchasing goods from the primary sector (agriculture, fishing, etc.) or services from individuals without the capacity to issue invoices.
There are limits on the value of auto-invoiced costs, generally not exceeding 20% of the total cost of goods sold and consumed or third-party services and supplies, with a possibility of 40% for essential goods.
Entities performing auto-invoicing are obligated to withhold tax at the source.

Penalties for Non-Compliance:

The decree outlines penalties for non-compliance, including:

Failure to issue invoices (including electronic ones) can result in fines of 7% of the unissued invoice value, or 15% for repeated non-compliance (more than five instances).
Using unvalidated software or uncertified invoice booklets.
Omitting mandatory requirements on invoices.
Failure to issue receipts or archive documents.
Issuing invoices outside the required deadlines.
Failure to submit the SAF-T file or omitting documents from the file.
Penalties also apply to software producers, printers, and typographies that do not comply with regulations.
Penalties may be mitigated by 50% for a first violation.

Technical Specifications:

The data structure for the software and the electronic invoicing model, along with other technical and procedural specifications, will be defined in a separate Executive Decree from the Ministry of Public Finance.

Implications:

This comprehensive reform signifies a major step by the Angolan government to modernise its tax system, increase transparency, and combat tax evasion. Businesses operating in Angola, particularly large taxpayers and those involved in B2G and B2B transactions, need to prepare for the mandatory implementation of e-invoicing by September 2025. This includes adopting certified software, integrating it into existing systems (ERP, etc.), and training staff. Smaller businesses should also consider the benefits of voluntary adoption. The “Award-Winning Invoice” draw is a notable initiative to encourage citizen participation in the reporting process.

Next Steps/Recommendations:

Businesses should urgently assess their current invoicing systems and readiness for e-invoicing.
Engage with certified software providers or the AGT to ensure compliance with technical specifications and SAF-T requirements.
Stay informed about the forthcoming Executive Decree detailing technical specifications.
Train relevant personnel on the new e-invoicing processes and requirements.
Review auto-invoicing practices and ensure compliance with the new regulations and withholding obligations.
Understand the penalties for non-compliance and take proactive steps to avoid them.

This briefing is based on the provided sources and focuses on the key aspects of Angola’s new e-invoicing and tax reform legislation. For detailed legal advice and specific guidance, consult official government publications and tax professionals.