Decree makes issuing invoices mandatory in Angola

17 April 2019

Issuing invoices for the purchase of goods or services have become mandatory for all taxpayers in Angola, a measure that aims to reduce the weight of the informal economy, alongside new rules of communication to the tax authorities.

Presidential Decree No. 292/18, which came into effect on 2 April and approves the Legal Regime of Invoices and Equivalent Documents, provided to Macauhub by Legis-PALOP+TL, sets out that for all taxpayers with fiscal residence in Angola it becomes mandatory to issue invoices or equivalent documents.

Equivalent documents include receipts, debit and credit notes, customs clearances and sales or service receipts.

The obligation is applied to all transfers of goods, services, advances or prepayments located in Angolan territory, under the Tax Codes.

It has also become mandatory to include on the receipt (or on the invoice/receipt or collection/receipt notice) the amount of taxes withheld or charged.

For economic operators with turnover equal to or greater than an equivalent amount in kwanzas of US$250,000, it has become mandatory to issue invoices and equivalent documents through certified software, or face fines totaling up to 15% of the value of the invoices not issued.

The new rules apply to the issue, preservation and filing of invoices and equivalent documents in all transfers of goods, services, advances or advance payments which they carry out in the course of their business, commercial, industrial, service, freelance profession, as well as civil activity with or without a commercial purpose.

In addition, to the Legal System for Electronic Submission of Taxpayers’ Accounting Information, which obliges all taxpayers who, within the scope of their commercial, industrial or services activity, have an annual turnover or import transactions of goods of more than 50 million kwanzas, in March, the rules and requirements for Validation of Electronic Invoice Processing Systems for Taxpayers were also approved, in order to guarantee registered information to prevent fraud and tax evasion.

As of 6 March, only software that complies with the new requirements approved by the Angolan government can be used to generate the Tax Inspection File, for validation by the General Tax Administration, according to Legis-PALOP+TL.

Figures from the World Labor Organization (ILO) showed that the weight of the parallel market in Angola accounts for 94% of the population, and the vast majority of transactions are outside the control of the Treasury. (Macauhub)