- Mozambique will expand VAT to cover digital goods and services supplied to consumers (B2C) from early 2026 at a 16% rate.
- The reform aims to modernize tax rules, capture cross-border digital commerce, and level the playing field between traditional and digital businesses.
- B2B supplies from non-resident entities will continue using the reverse charge mechanism; B2C suppliers may need to register for VAT in Mozambique.
- The scope includes a broad, technology-neutral definition of digital goods and services, such as SaaS, streaming, online marketplaces, and mobile wallet activity.
- The reforms will require updated compliance, registration, invoicing, and reporting processes for both resident and non-resident suppliers.
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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