The Angolan Government has confirmed that Value Added Tax (VAT or IVA in Portuguese) will be introduced on 1 October, instead of 1 July, according to an announcement on Wednesday in Luanda at the end of the meeting of the Economic Commission of the Council of Ministers.
The decision followed an analysis of the memorandum on the flexibility plan for the introduction of VAT and was in line with the consensus reached with the social partners, according to Angolan news agency Angop.
These changes come as a result of concerns raised by the business sector, following publication of the Law that approves the VAT Code, which set the date for its introduction as 1 July, according to the director of the General Tax Administration, José Leiria, speaking at the end of the session of the Economic Commission.
The director also said that the memorandum reflects the main concerns raised by businesspeople and civil society.
Leiria said that the VAT Code and other related bills will be considered on Friday by the Council of Ministers, which will announce the specific changes to the respective codes.
In terms of exemptions, the director noted the health and education sectors as areas that will not be covered by VAT.
Entities that are not considered large taxpayers and who have had business or import operations in the equivalent amount in kwanzas of over US$250,000 are considered to be taxpayers covered by the transitional scheme.
Under this scheme, taxpayers are subject to a simplified tax rate of 3.0% on a quarterly basis.
For taxpayers registered in all other tax offices, the provisions of the VAT Code shall apply with effect from 1 January 2021. (Macauhub)