Mozambique: VAT rate cut to 16% was approved by the Parliament
The Parliament approved a proposal for a VAT cut rate. The purpose of the VAT cut is to stimulate the economy’s growth.
The proposed VAT cut rate in Mozambique is shown in the table below:
| Old VAT Rate | New VAT Rate |
| 17% | 16% |
Businesses with a turnover of more than MZN 2.5 million per year must register for VAT. The measures for further reduction should be delivered properly to avoid a possible compromise of the government’s potential development programs.
The measures will enter into force from 1 January 2023. We will update you once further details are made available.
Source: furtherafrica.com
