Value-added tax (VAT)

The standard VAT rate is 14%, and VAT has a broad tax base.

The following reduced VAT rates are applicable to a specific set of transactions:

  • 1% on imports and supplies of goods in the Province of Cabinda.
  • 2% for the provision of port services and public water distribution services in the Province of Cabinda.
  • 5% applicable to the products listed in Table I and II of the VAT Code (food goods and agricultural inputs).
  • 7% on the provision of hotel and restaurant services, provided the real estate and motorised vehicles used within these activities are registered in the name of the company, the taxpayer issues invoices through electronic means, and all tax returns are duly submitted.
  • 7% on the simplified VAT regime (excluding the lease of immovable property, which is exempt).

The standard regime

Local entities with an annual turnover or an annual volume of import operations higher than AOA 350 million are liable to the standard VAT regime.

Entities operating in the manufacturing industry may be included in the standard VAT regime if in the previous year they had a turnover or import operations exceeding AOA 25 million.

Under this regime, taxpayers:

  • Issue invoices, charging VAT in respect of their taxable transactions.
  • File a monthly VAT return and pay the balance between output and input VAT; VAT returns are filed up to the last working day of the month following the one in which the operations were carried out.
  • Have proper accounting records according to Angolan PGC (Angolan GAAP). 

The simplified regime

The simplified regime applies to taxpayers with an annual turnover or volume of import operations between AOA 25 million and AOA 350 million.

Under this regime, taxpayers:

  • Issue invoices, without VAT.
  • File a monthly VAT return and pay an amount corresponding to 7% of the amount received in respect of transactions/advance payments that would be liable to VAT if the taxpayer was on the standard VAT regime, plus 7% of VAT self-assessed in relation to services acquired from non-resident entities, less 7% of input VAT.

Taxpayers under the simplified regime may opt to be included in the standard VAT regime if all the following requirements are fulfilled:

  • Organised accounting according to Angolan PGC (Angolan GAAP).
  • Absence of tax and customs debt.
  • Registration duly updated in the system of the General Register of Taxpayers.
  • Issuance of invoices/equivalent documents through certified billing software.
  • Submission by electronic transmission of data regarding the VAT returns, as well as the elements of its accounts.

When changing from the simplified to the standard VAT regime, the entity is allowed to deduct 90% of the VAT incurred in goods to be sold that have been acquired in the 12 months preceding the change and upon authorisation from the Angola tax authorities.

Exemptions

The following supplies are VAT exempt:

  • Pharmaceutical products intended exclusively for therapeutic and prophylactic purposes.
  • Provision of educational services by duly recognised establishments.
  • Provision of health medical services performed by hospitals, clinics, and the like.
  • Transport of sick or injured persons by appropriate authorised bodies in ambulances or vehicles.
  • Medical equipment for the exercise of the activity of health establishments.
  • Wheelchairs and similar vehicles, typewriters and printers for braille characters, and articles to be used by the blind.
  • Books, including in digital form.
  • Sale and lease of immovable property.
  • Collective transport of passengers.
  • Financial intermediation operations, including financial leasing, except for those where a specific and predetermined fee is charged for the service.
  • Life and health insurance and reinsurance.
  • Petroleum products.

Imported goods intended as gifts for philanthropic purposes or to mitigate the effects of natural disasters, namely droughts, floods, storms, cyclones, earthquakes, pandemics, and others of an identical nature are exempt from VAT, provided that the respective purpose is duly recognised by the General Tax Administration (Administração Geral Tributária or AGT).

Zero-rated VAT

Exports of goods, supplies of goods and service to meet the direct needs of vessels and aircraft engaged in commercial activity, and international transport of passengers are zero rated.

Captivation regime

The state (not including public companies) and oil investing companies are obliged to captivate 100% of the VAT charged by their suppliers. The Angolan National Bank, commercial banks, insurers and reinsurers, and telecommunication operators, duly licensed, captivate 50% of the VAT. The VAT captivated is withheld and reported as output VAT in the VAT returns of the entity that has captivated.

The captivation regime does not apply to the following transactions:

  • Supplies of goods made by supermarkets, supplies of hotel and restaurant services, supply of services provided by commercial banks, supply of water and energy, and supply of services where payment is made through ATM.
  • Transactions carried out between the National Bank, commercial banks, insurance and reinsurance companies, and telecom operators.

If the invoice is paid and the customer does not captive the VAT, the obligation to pay the VAT is transferred to the supplier.

Pre-filled VAT returns 

The tax authorities implemented a pre-filled VAT return, introducing a new process for automatically completing the Supplier Annex. This procedure applies to invoices from national suppliers and imports but excludes oil and gas companies. The automatic completion relies on the suppliers' SAF-T file and includes all invoices, even those related to non-deductible VAT expenses, which must be identified in the Annex. Invoices from foreign suppliers will continue to be manually completed in the Supplier Annex. This procedure began on 22 April 2025. 

 

(Updated info as on 25.10.25)