The Angolan government extends deadline for VAT return for Petroleum Investing Companies to 31 December 2021
The General Tax Administration (locally known as Administração Geral Tributária or AGT) announced that the filing deadline for October 2021 VAT return has been extended to 31 December 2021. The ruling applies to all for Petroleum Investing Companies that are required to submit VAT returns.
It intends to avoid constraints regarding compliance with the deadlines of the reporting and payment obligations. International Trade Administration of United States considers Angola as the second largest oil producing country in sub-Saharan Africa. The country is also an OPEC member with output of approximately 1.3 million barrels of oil per day (bpd).
VAT was introduced by the Angolan Government on 1 October 2019, revoking Consumption Tax. This makes the country one of the last African countries to introduce a value-added tax system. The VAT system is a modern regime with a standard rate of 14% and reduced rates of 5% and 2% (Special Regime of Cabinda).
However, on 1 January 2021, a new simplified taxation regime was implemented. The new regime follows the General State Budget for 2021 and is applicable to taxpayers whose turnover or goods import operations is equal to or less than AOA 350 million. VAT is charged at a rate of 7% on the turnover amount effectively paid by the customers related to the sales of goods and services subject to VAT and not exempt. When changing from the Simplified Regime into the General Regime, the taxpayer may deduct the VAT incurred on the acquisition of stock for sale in the previous 12 months preceding the change, upon authorization of the Angolan tax authorities.