The drafting of the bill for the introduction of Value Added Tax (VAT/IVA) in Angola is at an advanced stage and should be submitted next June to the Council of Ministers for consideration and subsequent referral to the Angolan parliament, said the coordinator of the Technical Group for the Implementation of VAT of the General Tax Administration.
Adilson Sequeira, who spoke at the end of the first meeting between the General Tax Administration and the Major Taxpayers, said that after approval, VAT will replace the Consumer Tax.
The rate to be applied when VAT comes into force is still being studied, but is expected to be 14%, the average used in the Southern African Development Community (SADC) region, against the 5% to 10% consumer tax, according to Jornal de Angola.
The coordinator of the technical group added that VAT will be extended to all taxpayers gradually from 1 January 2019, with the process starting with the large taxpayers, with a transitional period of two years. (macauhub)