VAT – Tax Credit for 12 months Presidential Decree No 98/20, dated 9 April 2020, has approved several immediate measures for relief of the negative economic and financial effects of the COVID-19 pandemic. One of these measures is a granting of a tax credit for a period of 12 months of the VAT paid upon importation of capital and raw material goods necessary to the “basic basket” (“cesta básica”), as well as other goods considered as priority from national origin (totalling 54 goods, listed in Presidential Decree No. 23/19, dated 14 January 2020).
In this context, tax authorities have published several rulings, such as Ruling no. 19/2020, dated 27 March 2020, setting out the exemption from VAT, customs duties and from any other fee due for any supply of services, on the import of goods intended to prevent and contain the spread of COVID-19. Only goods imported for humanitarian aid or donations can benefit from this exemption.
The procedures for an effective application of the measure regarding the aforementioned VAT credit have been defined with Ruling no. 34/20, dated 17 April 2020.
Ruling no. 34/20 states the following requirements for taxpayers to benefit from the VAT credit at stake:
- Entities which have their tax registration with the tax authorities (AGT) duly updated, falling within the scope of one of the VAT Regimes (Standard, Transitional or Non-Subjection) and importing any goods or raw materials intended exclusively for the production of those 54 products, may, upon prior request made to the Director of Customs Services, carry out customs clearance of imported goods (customs clearance) and only make, a posteriori, the payment of VAT due on said importation;
- The aforementioned payment may be made by the deadline of 12 months as of the following day on which the customs declaration is submitted to the AGT. The last day for the payment to be made in full is the 15th day after those 12 months, after which the debt certificate will be extracted if payment has not been fully made;
- As regards taxpayers of the Standard VAT Regime adhering to this mechanism of deferral of payment of VAT on importation, tax may only be deducted when the payment of VAT is made and in the respective proportion thereto (by the applicable deadlines).
This request to regularise VAT on importation a posteriori may be made until 8 April 2021.
Angolan VAT authorities – communication improvements
It is also important to highlight that Angolan VAT authorities have been strongly investing in the improvement of communication and sharing of information electronically, through more regular publication of rulings and press releases, which reveals, in these times of crisis, a technological boost enhancing fiscal certainty and security.
Indeed, the several rulings and press releases published have brought more clarity to various topics, such as: procedures for requesting VAT refunds, procedures for nominating a tax representative for non-resident entities, without residence, head office or permanent establishment in the national territory; procedures for assessing VAT on financial operations and issuance of invoices by financial institutions; implementing VAT for insurance companies and procedures for issuing invoices or equivalent documents, amongst others.
As regards procedures for nominating a tax representative for non-resident entities, without residence, head office or permanent establishment in national territory, Angolan tax authorities confirm that such entities, performing operations in Angola subject to VAT, must nominate a tax representative registered in the Standard VAT Regime, in order to comply with declarative obligations and payment of VAT. Additionally, it is also set out that the nominated tax representative must comply with the legal framework of invoices and equivalent documents currently in force and is solely responsible for compliance with declarative obligations and respective VAT payments.
