The Angolan parliament approved on Thursday by a majority the Bill amending the Value Added Tax (VAT) Code that determines its introduction as of 1 October, the Angolan press reported.
The amendment of the law aimed to bring legislation in line with the process of preparing companies to pay VAT (IVA in Portuguese), since many of them were not subject to the general scheme and were not included in large taxpayers as well as not being prepared to start paying it from 1 July, which was the date originally proposed.
The changes made include the tax rate for the transitional regime from 7.0% to 3.0%, as well as updating registration from 60 to 30 days from the date of publication of the new Law.
Under the draft Law, the education and health sectors are exempt from VAT, according to the Angop news agency.
The tax regime for VAT was also adjusted for the province of Cabinda, taking into account its geographical situation as an enclave, in order to keep the same incentives for local import and production in place.
VAT, which starts a single rate of 14%, replaces consumption tax, which ranges from 5% to 30%.
The Angolan members of parliament also approved the proposed Law amending the Special Consumption Tax Code, which adjusts the tax rates applied in the region of the Southern African Development Community (SADC) based on the criterion of differentiated taxation of certain goods.
The Special Consumption Tax is also due to be introduced on 1 October.
Source: Macauhub