1、Worldwide VAT,GST and Sales Tax Guide2023PrefaceWhile greatly accelerating the pace of all their tax legislation,the worlds governments continue to rely heavily on indirect taxes as an invaluable source of revenue.As a result,there is increased risk that taxpayers will be caught unprepared,making a

2、current,detailed guide like the Worldwide VAT,GST and Sales Tax Guide all the more valuable.The books organization is straightforward.Chapter by chapter,from Albania to Zimbabwe,we summarize indirect tax systems in 149 jurisdictions.All of the content is current on 1 January 2023,with more recent ad

3、ditions noted.Each chapter begins with contact information for the key people in that jurisdictions EY member firm offices.We then answer the basic questions practitioners ask about indirect tax systems:At a glance,what are the basic features of the major indirect tax in this jurisdiction?What is th

4、e scope,and who is taxable?What are the rates,and how has the country defined the time of supply?When can taxpayers recover VAT that they have paid on inputs?What are the rules on filing,payment and penalties?For many years,the Worldwide VAT,GST and Sales Tax Guide has been published annually,along

5、with two companion guides on broad-based taxes:the Worldwide Corporate Tax Guide and the Worldwide Personal Tax and Immigration Guide.In recent years,those three have been joined by additional tax guides on more specific topics,including the Worldwide Estate and Inheritance Tax Guide,the Worldwide C

6、apital and Fixed Assets Guide,the Transfer Pricing Global Reference Guide and the Worldwide R&D Incentives Reference Guide.Each represents thousands of hours of tax research,and the entire suite is available free online,along with timely EY Tax Alerts and other great publications on .You can sign up

7、 to receive EY Tax Alerts daily into your inbox at .EY March 2023This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting,tax,legal or other professional advice.Please refer to your advisors for specific advice.About EY Tax ServicesY

8、our business will only succeed if you build it on a strong foundation and grow it in a sustainable way.At the EY organization,we believe that managing your tax obligations responsibly and pro-actively can make a critical difference.Nearly 60,000 talented tax professionals,in more than 140 countries,

9、give you technical knowledge,business experience,consistency and an unwaver-ing commitment to quality service wherever you are and whatever tax services you need.2023 EYGM Limited.All Rights Reserved.ContentsPreface.iiiEY Global Indirect Tax contacts.1Albania.2Algeria.14Angola.25Anguilla.39Antigua a

10、nd Barbuda .49Argentina.59Armenia.71Aruba.83Australia.91Austria.108Azerbaijan.130Bahamas.140Bahrain,Kingdom of.151Bangladesh.175Barbados.190Belgium.200Bhutan.223Bolivia.225Bonaire,Sint Eustatius and Saba(BES Islands).236Bosnia and Herzegovina.244Botswana.257Brazil.267Bulgaria.281Cambodia.305Cameroon

11、.317Canada.330Chad.353Chile.364China Mainland.374Colombia.397Congo,Republic of the.412Costa Rica.421Cte DIvoire(Ivory Coast).431Croatia.440Curaao.460Cyprus.469Czech Republic.487Democratic Republic of the Congo.511Denmark.520Dominican Republic.539Ecuador.549Egypt .559El Salvador.570Equatorial Guinea.

12、582Estonia.592Eswatini.612European Union.621Fiji .635Finland.644France.661Georgia.684Germany.697Ghana.717Greece.732Guatemala.752Guinea.766Guyana.776Honduras.786Hungary.797Iceland.821India.835Indonesia.851Ireland,Republic of.866Isle of Man.884Israel.904Italy .915Jamaica.946Japan.955Jersey,Channel Isl

13、ands.966Jordan.977Kazakhstan.986Kenya.999Korea,Republic of.1010Kosovo.1022Kuwait.1036Lao,Peoples Democratic Republic of.1038Latvia.1047Lebanon.1075Lesotho.1085Liechtenstein,Principality of.1098Lithuania.1099Luxembourg.1126Madagascar.1143Malawi.1157Malaysia.1166Maldives.1182Malta.1193Mauritius.1211Me

14、xico.1221Moldova.1234Mongolia.1246Montenegro,Republic of.1257Morocco.1267Mozambique.1279Myanmar.1291Namibia.1292Nepal.1303Netherlands.1314New Zealand.1332Nicaragua.1349Nigeria.1359North Macedonia.1370Norway.1383Oman.1398Pakistan.1415Panama.1431Papua New Guinea.1440Paraguay.1450Peru .1460Philippines.

15、1471Poland.1490Portugal.1514Puerto Rico.1540Qatar.1547Romania.1549Rwanda.1573Saint Lucia.1582So Tom and Prncipe.1591Saudi Arabia.1600Senegal.1623Serbia,Republic of.1636Singapore.1650Sint Maarten.1665Slovak Republic.1672Slovenia.1700South Africa.1718South Sudan.1733Spain.1739Sri Lanka.1762Suriname.17

16、77Sweden.1786Switzerland.1802Taiwan.1815Tanzania.1829Thailand.1841Trinidad and Tobago.1852Tunisia.1862Trkiye .1876Uganda.1887Ukraine.1903United Arab Emirates.1921United Kingdom.1946United States.1977Uruguay.1986Uzbekistan.1998Venezuela.2009Vietnam.2022Zambia.2037Zimbabwe.2049Table of VAT,GST and sal

17、es tax rates.2062Table of currencies.20671EY Global Indirect Tax contactsLondon GMTEY+44(20)7951-2000 6 More London Place London SE1 2DA United KingdomEY Global Indirect TaxKevin MacAuley+44(20)7951-5728 EY Global Leader Mobile:+1 7887-822-090 Email:Maria Hevia Alvarez+1(212)773-6754 EY Global Deput

18、y Leader Mobile+1(646)831-2187 Email:Global TradeJeroen Scholten+31(88)407-1009 EY Global Leader Mobile:+31(6)21-25-23-83 Email:EditorsGeorgina Lunn+44(0)113 298 2476 Email:Scott Daniels+1(214)979-1672 Email:2A GMT+1EY Ibrahim Rugova Str.Sky Tower 6th Floor 1001 Tirana AlbaniaIndirect tax contacts M

19、ilen Raikov+359(2)8177-100 (resident in Sofia,Bulgaria) Anisa Jasini+355(4)241-9575,Ext.131 A.At a glanceName of the tax Value-added tax(VAT)Local name Tatimi mbi Vleren e Shtuar(TVSH)Date introduced 27 April 1995Trading bloc membership Central European Free Trade AgreementAdministered by General Di

20、rectorate of Taxes of AlbaniaVAT rates Standard 20%Other 6%,zero-rated(0%)and exemptVAT number format A23456789BVAT return periods MonthlyThresholds Registration for resident taxable persons Annual turnover of ALL10 millionRegistration for exporters,importers,non-established businesses Subject to re

21、gistration regardless of turnoverRecovery of VAT by non-established businesses NoB.Scope of the taxVAT applies to the following transactions:The supply of goods and services performed by a taxable person in Albania Importation of goods into Albania,regardless of the status of the importer Services s

22、upplied to taxable persons in Albania by service providers,of which the place of bus-iness is outside Albania Certain supplies of services rendered to nontaxable persons in Albania by providers whose place of business is outside Albania,such as digital services and services related to an immovable p

23、roperty located in AlbaniaAlbAniA 3The use of goods or services purchased or produced in the course of a business activity for pri-vate purposes constitutes a taxable supply to the extent the VAT on those supplies was deducted.Effective use and enjoyment.To avoid instances of non-taxation or double

24、taxation,jurisdictions can apply“use and enjoyment rules”that allow a service that is“used and enjoyed”in the juris-diction to be taxed or prevent a service that is“used and enjoyed”outside the jurisdiction from being taxed.If a service is taxed in the jurisdiction under the“use and enjoyment”provis

25、ions,a non-established supplier of the service may be required to register for VAT in that jurisdiction where it has customers that are not taxable persons.In Albania the VAT law provides for the application of the use and enjoyment rules as a deviation from the main rules for determining the place

26、of supply of services.These rules apply to services such as advertising,telecommunication and broadcasting regardless of whether they are provided to taxable or non-taxable persons,i.e.,business to business(B2B)and business to consumer(B2C).Transfer of a going concern.Normally the sale of the assets

27、 of a VAT-registered or VAT-registrable business will be subject to VAT at the appropriate rate.However,a transfer of a business as a going concern(TOGC)may be outside the scope of the tax under certain conditions.A TOGC is the sale of a business or part of a business capable of separate operation,i

28、ncluding assets.Where the sale meets the conditions,the supply is treated as outside the scope of VAT.In Albania,a TOGC is treated as outside the scope of VAT where the following conditions are met:A group of assets forming part of a business activity,or an entire business activity is transferred Th

29、e transfer is performed between two taxable persons(B2B)The transferee ensures the continuity of the business activity or part of it transferredTransactions between related parties.In Albania,for a transaction between related parties the value for VAT purposes is calculated at market value.The marke

30、t value is defined as the consid-eration that an independent buyer would be willing to pay for the supply of goods or services under open market conditions.In case no comparable value are available,the market value can be determined as follows:For supplies of goods,an amount not less than the purcha

31、se price or the acquisition costs at the moment of the supply For supply of services,an amount not less than the full costs incurred for performing the ser-vicesC.Who is liableAny person(entity or individual)that makes supplies in the course of the persons independent economic activity is liable to

32、VAT.Taxable activities also include“the exploitation of tangible or intangible property for the purpos-es of obtaining income from that on a continuing basis.”Exemption from registration.The VAT law in Albania does not contain any provision for exemp-tion from registration.Voluntary registration and

33、 small businesses.A taxable person established in Albania is obliged to register for VAT purposes and charge VAT if the annual turnover in the previous 12 months exceeds ALL10 million.Once this threshold of ALL10 million is exceeded,any supply shall be subject to VAT and the taxable person is requir

34、ed to apply for VAT registration within 15 days.Taxable persons with an annual turnover less than ALL10 million but greater than ALL5 million may voluntarily register for VAT,and that taxable person must remain registered for a minimum of two years.Persons involved in import or export activities mus

35、t register for VAT regardless of the amount of turnover.4 AlbAniAGroup registration.Group VAT registration is not allowed in Albania.Fixed establishment.A foreign business is deemed to have a fixed establishment for VAT pur-poses in Albania where it has any establishment characterized by a sufficien

36、t degree of perma-nence and a suitable structure in terms of human and technical resources that would enable it to provide the services that it supplies,and/or to receive and use services supplied to it for its own needs.Non-established businesses.A“non-established business”is a business that does n

37、ot have a fixed establishment in Albania.No VAT registration threshold applies to taxable supplies made in Albania by a non-established business.A non-established business must register for VAT in Albania if it engages in any of the following supplies:Supply of goods located in Albania at the time o

38、f supply Certain supplies of services to nontaxable persons in Albania,such as digital services and services related to an immovable property located in Albania Import and export activities in AlbaniaTax representatives.A non-established business must appoint a resident VAT representative to reg-ist

39、er for VAT purposes in Albania unless the reverse-charge mechanism applies.The VAT repre-sentative may act on behalf of the taxable person for all purposes related to VAT and is jointly liable for compliance with all VAT obligations of the non-established business.Reverse charge.The reverse-charge m

40、echanism applies to supplies of services made by a non-established business to taxable persons in Albania.A non-established business is not required to register for VAT if all its taxable supplies in Albania fall under the reverse-charge mechanism.Domestic reverse charge.There are no domestic revers

41、e charges in Albania.Digital economy.Albania follows the destination principle regarding cross-border digital services supplied to nontaxable persons in Albania.The place of supply of cross-border digital services to nontaxable persons is the place where the nontaxable person is established or where

42、 it has its permanent address or usually resides.Therefore,nonresident providers of electronically supplied services for B2C supplies are required to register and account for VAT in Albania.This is done by appointing a VAT representative in Albania to account for and pay VAT liability.No VAT registr

43、ation threshold applies.Nonresident providers of electronically supplied services for B2B supplies are not required to register for VAT in Albania.Instead,the customer is required to self-account for the VAT via the reverse-charge mechanism(see the Reverse-charge subsection above).Imported goods are

44、 exempt from import duties and VAT,if the goods are purchased through the internet and imported into Albania through postal mail with a value lower than EUR22(and its equivalent in ALL).Online marketplaces and platforms.The above rules for the digital economy also apply to online marketplaces and pl

45、atforms,i.e.,the place of supply for services supplied by electronic means to nontaxable persons is the place where that person is established or where they have their perma-nent address or usually resides.Registration procedures.The application for registration can be performed online,in person at

46、the counters of the Agency for the Delivery of Integrated Services Albania(ADISA)or in person at the National Business Center(NBC).A taxable person may personally or through an authorized person submit the registration form and requested documents with the NBC.The registration AlbAniA 5procedure gen

47、erally lasts two to three working days.The required documents for registration are as follows:Copies of the identity card of the administrator or the authorized person Authorization for the person submitting the application for registration if different from the administrator of the company Copies o

48、f identity cards of the shareholders of the company Founding act and statute if drafted in two different documents Commercial extract of the foreign company registering a branch/subsidiary in Albania Good standing certificate of the foreign company registering a branch/subsidiary in AlbaniaThe appli

49、cation for VAT registration of the taxable person must be performed within 30 days after the foundation date and before the effective start of the business activity.Deregistration.Every taxable person registered for VAT may request to be deregistered if turn-over fell below the VAT registration thre

50、shold during the previous 12 months.Such deregistration becomes effective 12 months after the request.Taxable persons ceasing their economic activity must request deregistration within 15 days from the termination of their activity.Changes to VAT registration details.In case the taxable person notic

51、es that its turnover falls below the VAT registration threshold or vice versa,they must inform the tax authorities and request the change within 15 days.The taxable person must also inform the tax authorities within 15 days for the following changes to its VAT registration details:name change,operat

52、ing activity address or contact changes,legal status change,opening/closing of branches or sectors and change in the economic activity type.D.RatesThe term“taxable supplies”refers to supplies of goods and services that are liable to a rate of VAT,including the zero rate.The VAT rates are:Standard ra

53、te:20%Reduced rate:6%Zero-rate:0%The standard rate of VAT applies to all supplies of goods and services unless a specific measure provides for a reduced rate,the zero rate or an exemption.Certain supplies are referred to as“exempt-with-credit”(i.e.,zero-rated),which means that no VAT is chargeable,b

54、ut the supplier may recover the input tax(effectively zero-rated).Examples of goods and services taxable at 0%Exports of goods International transport Services relating to maritime activities Supplies under diplomatic arrangements Supply of gold to the Central Bank of Albania Intermediary services r

55、elated to zero-rated supplies or services rendered abroadExamples of goods and services taxable at 6%Supplies of accommodation services by the accommodation facilities Supplies made within five-star accommodation structures of an internationally known trade-mark Supplies of accommodation and restaur

56、ant services,excluding beverages,by the certified struc-tures operating in agritourism6 AlbAniA Supplies of advertising services by audiovisual media Supply of licensed public transport equipped with electric motors,with nine plus one places or more Supply of books of any type Supply of construction

57、 work services for public investments in sports clubs/sports federations or for investments in sports infrastructure undertaken by private entitiesThe term“exempt supplies”refers to supplies of goods and services that are not liable to VAT and that do not qualify for input tax deduction.Examples of

58、exempt supplies of goods and services Hospital services and medical care Insurance and reinsurance services Supply and rent of land and buildings Financial services Postal services Education services Hydrocarbon exploration operations Printing and sale of publications Betting,lotteries and gambling

59、Importation of machinery and equipment used for inward processing of goods or in the imple-mentation of contracts of ALL50 million or more Importation of production machinery for small business Import of raw materials used for the manufacture of medicines,with the exception of dual-use substances,ca

60、rried out by holders of production authorization Agricultural machinery Agricultural inputs,such as fertilizers,pesticides,seeds and seedlings Veterinary services,except veterinary services for domestic animals New vehicles with electric motor,zero km,that have not been previously registered for cir

61、cula-tion in any other country Supply related to the construction/reconstruction process in the case of natural disasters upon receipt of the authorization by the General Tax Director Supply of services and goods directly to the constructor engaged with the building process in the case of natural di

62、sasters,when authorized by the General Tax DirectorOption to tax for exempt supplies.The Minister of Finance may grant through a decree the right to opt for taxation for the following VAT exempt supplies:Financial transactions The supply of building and of the land on which the building stands The s

63、upply of land Leasing of immovable propertyE.Time of supplyVAT becomes due at the“time of supply”unless otherwise provided in law.The time of supply is considered to occur when an invoice is required to be issued or when goods or services are delivered.The invoice should be issued at the moment that

64、 the supply of goods or services takes place.If the payment is made before the delivery of goods or services,the moment of supply is the moment when the payment is made.The time of supply for a continuous supply of goods and services,including construction ser-vices,is considered to be the month whe

65、n the invoice is issued.Invoices should be issued on a monthly basis.AlbAniA 7Deposits and prepayments.Where a payment is to be made on account before the goods or ser-vices are supplied,VAT shall become chargeable on receipt of the payment and on the amount received.In case of any amount paid or re

66、tained in the form of a guarantee deposit in relation to the per-formance of a supply of goods or service,VAT shall become chargeable at the moment the deposit is received.In case the amount of deposit is returned to the customer,then the necessary adjustment should be made for VAT purposes.Exemptio

67、n from the above is granted to the guarantees deposited in a bank deposit account or to a third party,without the right of use.In such case,VAT shall become chargeable at the moment that the deposit guarantee is executed.Continuous supplies of services.Supplies of services performed on a continuous

68、basis,within a period of time(as prescribed in the supply agreement between the customer and supplier,for example invoices to be issued on a monthly basis),including construction operations,shall be deemed to have been made in the same month in which the invoice is issued.Where payment is made in ad

69、vance of the invoice being issued,there are no special time of sup-ply rules in Albania for this scenario.As such,the general time of supply rule applies(as outlined above),which is when the payment is made.Goods sent on approval for sale or return.There are no special time of supply rules in Albani

70、a for supplies of goods sent on approval for sale or return.As such,the general time of supply rules apply(as outlined above).Reverse-charge services.Invoices for reverse-charge services are required to be issued by the 10th day of the month following the month in which VAT becomes due.Leased assets

71、.In the case of leased assets,the VAT becomes due at the time when the periodic monthly payments are invoiced to the lessee.In the case of a financial lease,whereby the option to buy the leased assets is exercised,VAT becomes due on the sale of assets,at the moment the final invoice is issued to the

72、 customer.Imported goods.The time of supply for imported goods is the date of importation or the date on which the goods exit a duty suspension regime.F.Recovery of VAT by taxable personsA taxable person may recover input tax,which is the VAT that the taxable person paid on the purchase of goods and

73、 services that were used to provide taxable goods and services in Albania.A taxable person may also recover VAT related to the overseas supply of services(outside the scope of Albanian VAT)that would have been taxable if made in Albania.A taxable person gen-erally recovers input tax by deducting it

74、from output tax,which is the VAT charged on supplies made.Input tax includes VAT charged on goods and services supplied in Albania,VAT paid on imports of goods and VAT applied to reverse-charge services.The time limit for a taxable person to reclaim input tax in Albania is five years.The taxable per

75、sons right to claim a VAT refund or offset the VAT credit with output tax expires five years from the filing date of the respective VAT return or its amendment.Nondeductible input tax.Not all input tax is deductible.Generally,input tax may not be recovered on purchases of goods or services that are

76、not used for business purposes.8 AlbAniAExamples of items for which input tax is not deductible Expenditure on fuel unless the payer is a company that purchases the fuel for trading purposes Expenditure on trips and per diems and hotel accommodation Expenditure on cars,unless the business activity c

77、onsists of the trading or renting of cars such as car rentals,taxi services and ambulancesExamples of items for which input tax is deductible (if related to a taxable business use)Expenditure relating to publicity and promotional articles Expenditure relating to representative expenses up to the amo

78、unt of expenses that are recog-nized as deductible for corporate income tax purposes Expenditure on fuel used solely for carrying on taxable economic activity up to the limit defined by a decree issued by the Minister of Finance Partial exemption.If a supply of a good or service is used partly for p

79、urposes of taxable supplies and partly for exempt supplies,the taxable person may not deduct input tax in full.This situation is known as“partial exemption.”The calculation of the amount of input tax that may be recovered is made on a pro rata basis by using the following formula:Amount of relevant

80、input tax x VAT creditable turnover Total annual turnover During the tax year,the pro rata VAT due may be calculated based on the preceding years results.The calculation must be adjusted by 31 January of the following year to reflect the actual results of the tax year.If the change in deductible inp

81、ut tax is less than ALL20,000 from the change of the initial and actual pro rata VAT,there is no need for a VAT adjustment.The taxable person should inform the tax authorities for the initial pro rata VAT that will use during the year,by no later than 31 January.The calculation does not include supp

82、lies of capital goods used by the taxable person for business purposes,nor does it include incidental real estate and financial transactions.Approval from the tax authorities is not required to use the partial exemption standard method in Albania.Special methods are not allowed in Albania.Capital go

83、ods.Capital goods are items of capital expenditure that are used in a business over several years.Input tax is generally deducted in the VAT year in which the goods are acquired.If the business comprises both taxable and exempt supplies and the capital goods do not only serve taxable supplies,the am

84、ount of input tax that can be recovered depends on the taxable persons partial exemption recovery position in the VAT year of acquisition.The amount of input tax recovered is adjusted over time if during the adjustment period the taxable persons pro rata cal-culation changes or the capital good is t

85、ransferred to an exempt activity with no right to deduc-tion.The capital goods adjustment period is as follows:Immovable capital assets:10 years Movable capital assets:5 yearsIn case of pro rata changes during the adjustment period,the adjustment is made for 1/5 for mov-able capital goods and 1/10 f

86、or immovable capital goods,while for transfer of capital goods to an exempt activity the adjustment is made for the remaining years of the adjustment period.Refunds.A taxable person may claim a VAT refund if both of the following conditions are satis-fied:The taxable person carried forward the relev

87、ant amount as a VAT credit balance in the following three consecutive months.The amount claimed exceeds ALL400,000.AlbAniA 9The taxable person must file a“Request for Refund”form,as prescribed in the VAT law,with the relevant tax office.The tax office must verify the fulfillment of the refund condit

88、ions and approve the refund within 60 days.Pre-registration costs.Input tax incurred on pre-registration costs in Albania is not recoverable.Bad debts.Taxable persons who have not received partial or total payment for a taxable supply may claim the VAT charged as input tax if all the following condi

89、tions are satisfied:The debt has remained outstanding for more than six months The amount has been written off A court has recognized the debt as uncollectible because the debtor is insolventNoneconomic activities.To the extent that they do not distort competition,payments received by not-for-profit

90、 organizations,such as grants,donations and membership dues,are considered to be noneconomic activities for which no VAT is due.The same applies to the performance of pub-lic services by the public authorities.G.Recovery of VAT by non-established businessesInput tax incurred by non-established busin

91、esses that are not registered for VAT in Albania is not recoverable.H.InvoicingVAT invoices.A taxable person must provide a VAT invoice for all taxable supplies made,includ-ing exports.The invoice must comply with the requirements set out in the VAT law and issued in accordance with the provision of

92、 the Law No.87/2019,“On the invoice and the turnover monitor-ing system”and its bylaws.Credit notes.A VAT credit note may be used to reduce the VAT charged on a supply of goods or services;a debit note may be used to increase the amount of VAT.Tax credit and debit notes must be cross-referenced to t

93、he original VAT invoice.Electronic invoicing.Electronic invoicing is mandatory for all taxable persons in Albania.The authenticity of the origin and the integrity of the electronic invoices content must be guaranteed by registration of the taxable person at the tax authorities central online platfor

94、m.Simplified VAT invoices.The taxable persons subject to the regime of small businesses(i.e.,annual turnover less than ALL10 million)may issue simplified invoices without VAT,but only of goods or services paid in cash.Simplified invoices should also follow the rules on electronic invoicing.Note that

95、 according to the new law on fiscalization,there are no simplified VAT invoices but only simplified invoices,which are issued from taxable persons who are not registered for VAT pur-poses and the transaction is conducted in cash.If the taxable person is voluntarily registered for VAT purposes,even i

96、f it does not reach the VAT registration threshold,the standard e-invoice shall be used.Self-billing.Self-billing is allowed in Albania.Self-billing is only allowed under the following conditions:Both the supplier and the customer should be taxable persons registered for VAT.The supply should be tax

97、able,not exempt.A written agreement should be in place between the supplier and the buyer,in which is pro-vided for a procedure for the acceptance by the supplier of the invoices issued by the buyer.Any invoice issued by the buyer in the name and on behalf of the supplier must be approved by the lat

98、ter.The buyer should notify the tax authority in advance.10 AlbAniA The buyer should undertake the obligation to declare and pay VAT in the name and on behalf of the supplier.The invoice issued by the buyer should identify the data(name,VAT ID,address,etc.)of the supplier and should indicate“Self-Bi

99、lling.”Proof of exports.No VAT is chargeable on exported goods if exporters have documented their supplies with an official customs declaration.Foreign currency invoices.An Albanian VAT invoice must be issued in the domestic currency,which is the Albanian lek(ALL).If an invoice is received in a fore

100、ign currency,the amounts must be converted into lek.The exchange rate used for imports is determined by Customs,while the exchange rate for domestic VAT supplies is the rate published by the Central Bank of Albania for the date of the invoice.Supplies to nontaxable persons.For supplies made by a tax

101、able person to a nontaxable person(private consumer)the supplier must issue a fiscal invoice regardless of the invoice amount.Records.A taxable person is required to keep records,including records of all supplies made by them,all supplies made to them,and all imports and exports of goods carried out

102、 by them as part of their economic activity,in compliance with the law“On accounting and financial statements.”In Albania,examples of what records must be held for VAT purposes include records of all invoic-es and any supporting documents issued by/to the taxable person,in respect of supplies made o

103、r received.In Albania,VAT books and records can be kept outside the country.There is no provision in the Albanian VAT law on where records should be held.However,in practice,records may be held in or outside of Albania.If the records are held outside of Albania,they must be easily accessible upon re

104、quest by the tax authorities.Record retention period.The period during which the taxable person must ensure that the invoic-es and supporting documents are retained,is five calendar years,starting from the next year following the invoice/document issuance.They shall be retained in the original form

105、in which they were sent or made available,whether in paper or electronic form.In addition,in case of invoices stored by electronic means,the data that guarantee the authenticity of the origin of the invoices and the integrity of their contents,must also be stored by electronic means.Electronic archi

106、ving.Electronic archiving is allowed in Albania.The taxable person has the right to designate the place of storage of the invoices or of the information retained,provided that they make them available to the competent authorities immediately upon request.If records are kept on a computer or as elect

107、ronic data,the taxable person should provide tax authorities access to the place where records are held and access to computers or other devices to inspect the records that are held as electronic data.I.Returns and paymentsPeriodic returns.The tax period is a calendar month.Purchase and sales ledger

108、s must be submit-ted monthly by the 10th day of the following month.Following the recent fiscalization reform the VAT return is automatically generated by the tax authorities based on the information pro-vided in the sale and purchase ledgers.However,taxable persons have the right to review and amen

109、d the VAT return accordingly.The deadline for VAT payment is the 14th day of the month following the tax period.For imports,VAT is payable upon importation.For a taxable person that is newly registered,the first tax period begins on the date of the registra-tion,as stated in the certificate of regis

110、tration,and ends on the last day of that month.AlbAniA 11VAT payable by a taxable person for a tax period equals the VAT on the total taxable value of supplies made during the tax period minus any input tax allowed as a deduction.Periodic payments.VAT payable by a taxable person for a tax period equ

111、als the VAT on the total taxable value of supplies made during the tax period minus any input tax allowed as a deduction.The VAT must be paid by bank transfer from an Albanian bank.Electronic filing.Electronic filing is mandatory in Albania for all taxable persons.Taxable per-sons must electronicall

112、y submit the purchase and sales ledgers and VAT returns.The electronic submission must be made online through the tax authorities system at https:/efiling.tatime.gov.al/cats_public/Account/LogOn.Payments on account.Payments on account are not required in Albania.Special schemes.Travel agencies.This

113、scheme applies to transactions where the travel agency deals with customers in its own name and uses the supplies of other taxable persons in the provi-sion of travel services.In this case,the taxable amount for services supplied to customers is the travel agencys margin,i.e.,the difference between

114、the total amount charged to the customer and the actual purchase price the travel agency paid for the services.The input tax incurred by travel agents may not be deducted.The special scheme does not apply to travel agencies that only act as intermediary,in which case the supplies and services of oth

115、er taxable persons can be treated as disbursements.Secondhand goods,works of art,collectors items and antiques.Taxable persons must electronical-ly submit the purchase and sales ledgers and VAT returns.Compensation scheme for farmers.The taxable person(purchaser)of the agricultural services and good

116、s is required to issue an invoice for purchases from farmers benefiting from this scheme for the taxable amount exclusive of VAT and then add VAT at the rate of 6%.The buyer pays the farmer the total price including the VAT calculated.The additional 6%is considered to be a com-pensation for the farm

117、er for the input tax that has been incurred.The taxable person(purchaser)must account for the VAT on the invoice but is entitled to recover the VAT subject to normal recovery rules.Investment gold.A special VAT scheme applies to investment gold.The taxable value of pro-cessed gold,imported gold and

118、processed gold supplied domestically,does not include the value of gold used as raw material.At the same time,the taxable value of an import or supply within the country includes material components such as:silver,precious stones,plastics,labor,pro-cessing wastage,etc.Taxable value of imported proce

119、ssed gold:The taxable value of imported processed gold,shall be determined in accordance with cus-toms and tax legislation.The supporting document is the foreign suppliers invoice issued to the domestic buyer,indicating the value of gold converted into pure gold,out of the total value of imported go

120、ld.In absence of such a breakdown,the importer cannot exclude from the taxable value of the import the value of gold used as raw material.Taxable value of processed gold supplied domestically:The value of a supply within the country is the full payment for that supply.The taxable value of processed

121、gold supplied domestically is calculated by deducting from the full supply charge the value of gold used as raw material.The supporting document is the invoice of the supplier indicating separately the value of the gold used as the raw material.In absence of such a breakdown,the supplier cannot excl

122、ude from the taxable basis the value of gold used as raw material.Irrespective of the supply nature,wholesale or retail,and irrespective of the supply value,the taxable person shall issue a tax invoice as provided in VAT law.12 AlbAniAAnnual returns.Annual returns are not required in Albania.Supplem

123、entary filings.No supplementary filings are required in Albania.In the case of underpaid VAT for a certain tax period and if no tax audit has been undertaken by the tax authorities,the taxable person can voluntarily amend the VAT return to adjust the situation.No penalties for late payment of VAT wi

124、ll be applicable.Correcting errors in previous returns.A taxable person can submit a new amended tax return in cases when it notices that the original submitted tax return is not correct.The amended tax return must be submitted within 36 months from the moment of original tax return submission with

125、the condition that this return has not been the subject of assessment from the tax authorities.An exceptional case is that the taxable person has the right to amend the tax return,even though it has been audited,if the amendment will result with higher tax liability.The tax return can be submitted o

126、nline through the e-account of the taxable person.Digital tax administration.The fiscalization reform aims to provide the tax authorities with a bet-ter control system and more efficient tax inspection.The fiscalization system is a set of measures used to reduce tax evasion in cash and noncash trans

127、actions.In the process of fiscalization,all transactions(invoices)are reported in real time to the tax authorities.For the purpose of identify-ing and tracking each transaction,each invoice is given a unique invoice number.The fiscaliza-tion process is regulated by Law No.87/2019“On fiscalization an

128、d turnover monitoring system”(“law on fiscalization”)and Instruction No.16,dated 3 April 2020.The law on fiscalization entered into force as of 1 January 2021 for cashless transactions between taxable persons and public institutions;1 July 2021 for cashless transactions between taxable persons;and 1

129、 September 2021 for cash transactions by taxable persons regardless of tax liabil-ity or annual turnover realized.The law on fiscalization covers all taxable persons who issue invoices as per the law on VAT,public institutions,banks,financial institutions other than banks and other entities that off

130、er ser-vices of electronic invoices payment.Every taxable person is subject to the law on fiscalization,except agricultural producers who are registered in the compensation scheme according to the law on VAT;taxable persons providing public transport and taxable persons who make supply goods/service

131、s that qualify for VAT exemption under the law on VAT.The taxable persons who are already registered as such with the tax authorities become auto-matically subject of the law on fiscalization.The new taxable persons who register in the Nation-al Business Center are to be registered automatically as

132、taxable persons subject to the law on fiscalization.The taxable persons subject to the law on fiscalization must submit through the central platform of invoices managed by National Agency for Information Society(NAIS)the details related to the place and type of business,the operator who will be resp

133、onsible for the invoice issuance through the fiscal system and the producer/maintainer of the software used.The latter should be independently registered with NAIS and certified as a software producer/maintainer.As per the new law on fiscalization,there will be no need of manual filing of the purcha

134、se and sales ledgers,as they will be automatically generated from the system of the tax authorities.The taxable person,however,must review the purchase and sales ledger by the 10th day of the fol-lowing month and adjust it with information as appropriate.According to the new law on fiscalization,the

135、 invoice must contain details such as“Fiscal Invoice”title,date and time of the invoice issuance,invoice number,the unique identification number,name and address for both,the seller and buyer.The invoice details must also include the code of the place where the supply of goods/services took place an

136、d the code of the operator who generates the invoice from the system,the quantity and description of the goods/services AlbAniA 13supplied,the total value including any discounts and the total amount due,the payment manner,the unique invoice number and the security number of the invoice issuer and t

137、he QR code.J.PenaltiesPenalties for late registration.Noncompliance with the requirement to register or to update reg-istration data triggers a penalty that can range from ALL10,000 to ALL15,000.Penalties for late payment and filings.Each late tax filing is subject to a penalty that can range from A

138、LL5,000 to ALL10,000.Late payment of a tax obligation triggers a penalty amounting to 0.06%of the tax due for each day of delay,up to a maximum of 365 days(i.e.,capped at 21.9%).In addition,default interest applies.Penalties for errors.Erroneous completion of a tax filing or a tax refund claim is su

139、bject to a penalty of 0.06%of the tax due for each day of delay,up to a maximum of 365 days.In addition,default interest applies.The late notification of or failure to notify the tax authorities of changes to a taxable persons VAT registration details is considered an administrative offense and can

140、be subject to a penalty of ALL15,000.For further details,see the subsection Changes to VAT registration details above.Penalties for fraud.Concealment of tax obligations constitutes a fiscal evasion and is subject to a penalty of 100%of the tax amount evaded.Improper administration of sales and purch

141、ases books and documentation is subject to a penalty that can range from ALL10,000 to ALL50,000.The failure to issue a VAT fiscal invoice for the whole amount of the transaction is subject to a penalty of 100%of the undeclared and unpaid tax liability.Criminal offenses carried out by taxable persons

142、 are penalized under the criminal code.These offenses relate to certain situations including,but not limited to,the following:Taxable persons willfully engaging in fiscal evasion Taxable person not paying taxes to the state budget Taxable persons destroying and concealing important tax documents and

143、 informationPersonal liability for company officers.Company officers cannot be held personally liable for errors and omissions in VAT declarations and reporting in Albania.Statute of limitations.The statute of limitations in Albania is five years.According to the Albani-an tax legislation,the statut

144、e of limitation is five years from the filing of a tax return or its amendment.The statute of limitation is suspended if a new tax assessment is issued either as a result of a tax appeal or a tax audit or investigation.Moreover,the statute of limitation is sus-pended or voided if the taxable person

145、is or becomes subject to penal proceedings in relation to its tax affairs.14A GMT+1EY Complexe Oriental Business Park Quartier des affaires Bab Ezzouar Algiers AlgeriaIndirect tax contacts Bruno Messerschmitt+213 770 258980 +33 6 84 02 72 51 bruno.messerschmittey- Halim Zaidi +213 770 82 52 35 A.At

146、a glanceName of the tax Value-added tax(VAT)Local name Taxe sur la Valeur Ajoute(TVA)Date introduced April 1992Trading bloc membership Greater Arab Free Trade Area(GAFTA)Administered by General Directorate of Taxes at the Ministry of Finance(DGI)(https:/www.mfdgi.gov.dz/)VAT rates Standard 19%Reduce

147、d 9%Other ExemptVAT number format XXXXXXXXXXXXXXX(15 Digits)XXXXXX(+5 Digits for branches)VAT return periods MonthlyThresholds Registration None Deregistration NoneRecovery of VAT by non-established businesses NoB.Scope of the taxVAT applies to the following transactions:Sales transactions,construct

148、ion works and services of industrial,commercial or artisanal nature,when they are carried out in Algeria on an usual or occasional basis Import operationsIn respect of the Algerian VAT territoriality,a business is deemed performed in Algeria:Sales transactions:when they are carried out with conditio

149、ns of delivery in Algeria Or Other operations:where the service rendered,the right assigned,the object rented,or the car-ried-out studies are used or exploited in AlgeriaAlgeriA 15Effective use and enjoyment.To avoid instances of non-taxation or double taxation,jurisdictions can apply“use and enjoym

150、ent rules”that allow a service that is“used and enjoyed”in the jurisdic-tion to be taxed or prevent a service that is“used and enjoyed”outside the jurisdiction from being taxed.If a service is taxed in the jurisdiction under the“use and enjoyment”provisions,a non-established supplier of the service

151、may be required to register for VAT in that jurisdiction where it has customers that are not taxable persons.As outlined above,a service is taxed in Algeria if it is“used and enjoyed”in Algeria.If a service delivered by a non-established supplier is used and enjoyed in Algeria,there is no requiremen

152、t for this supplier to register locally for VAT pur-poses unless this service triggers a permanent establishment(PE)in Algeria,in such case the foreign supplier should be tax registered in Algeria(for all taxes including VAT).However,in case no PE is triggered in Algeria for the foreign supplier,the

153、 local customer will be in charge of withholding tax(WHT)reporting and payment(including notably VAT)in case no double tax treaty exists between both jurisdictions or paying the VAT via the reverse-charge mechanism in case a double tax treaty exists and provides a neutralization or reduced tax rate

154、for the WHT.Transfer of a going concern.Normally the sale of the assets of a VAT-registered or VAT-registrable business will be subject to VAT at the appropriate rate.However,a transfer of a business as a going concern(TOGC)may be outside the scope of the tax under certain conditions.A TOGC is the s

155、ale of a business or part of a business capable of separate operation including assets.Where the sale meets the conditions,the supply is treated as outside the scope of VAT.In Algeria,a TOGC is not a concept that explicitly exists locally.As such,there are no specific guidance on the criteria and re

156、quirements for a transfer of business to satisfy the requirements of a TOGC.Nevertheless,in general a transfer of business should not be subject to VAT,as it could not be considered as a turnover(not included in the list of taxable transactions as provided above).Transactions between related parties

157、.In Algeria,referring to tax administration note dated 06/08/2013 on transfer pricing and profit shifting,intercompany transactions must be carried out in accordance with the“arms-length principle.”Also,it provides that the transfer price compliance with the arms-length principle shall be determined

158、 considering The nature of the product,its quality,its novelty,the delivery time,the presence of intangible elements attached to the product and the degree of finishing The conditions of the transaction,the volume of sales,the geographical location,the date of the transaction,the accessories to the

159、sale and the presence of intangible elements attached to the transactionThe Algerian legislature does not provide valuation methods.The accounting and financial meth-ods should be accepted and used by the valuation experts.However,transfer pricing methods provided by the Algerian legislation are sim

160、ilar to the OECD methods.C.Who is liableA taxable person is any person carrying out transactions within the scope of VAT,whether such transactions give rise to the payment of VAT or are exempt.Persons liable for VAT in Algeria are:Producers,such as:Individuals or legal persons who,mainly or incident

161、ally,extract or manufacture goods,fash-ion them or transform them as manufacturers or entrepreneurs of manufacturing activities to give them their final form or their commercial presentation under which they will be deliv-ered for use or consumption by the consumer,whether the processing operations

162、involve the use of other materials or not Individuals or legal persons who replace the manufacturer to carry out,either in its factories or outside its factories,all operations relating to the manufacture or the definitive commer-cial form of products such as packaging or in receptacles,the shipment

163、s or deposits of such goods whether they are sold under the brand name or on behalf of those who carry out such operations Persons or companies that have the operations referred to above,carried out by third parties16 AlgeriA Wholesalers,performing the following:Deliveries relating to articles which

164、,because of their nature or use,are not usually used by individuals Deliveries of quantities of goods of the same prices,performed in bulk or in detail Deliveries of products for resale regardless of the quantity delivered Subsidiaries,performing the following:A subsidiary company would be any compa

165、ny that ensures the operating part of one or more branches of another company,which is under the control or direction of the latter Independent professionals opting for the common tax regime option(added by article 93 of the Finance Act for 2022).Self-supplies are subject to VAT.The taxable base is

166、determined as follows:For self-supplies of movable assets:by the wholesale prices of similar goods or,otherwise by the price increased by the normal profit of the manufactured goods For self-supplies of immovable assets:by the cost priceExemption from registration.There are no VAT registration requi

167、rements applicable to non-estab-lished businesses that source cross-border supplies of goods or services.Indeed,there is no reg-istration dedicated to VAT only,but rather a tax registration(covering all applicable taxes,notably VAT)required for non-established businesses if a taxable presence is tri

168、ggered in Algeria.For imported goods,there is no requirement for the nonresident supplier to collect the Algerian VAT.In practice,the VAT is paid by the Algerian importer when the goods are cleared at customs.For imported intangibles(i.e.,supplies that do not require payment of the VAT at customs),i

169、f the Algerian client is a business,it is required to reverse-charge VAT.Voluntary registration and small businesses.Taxable persons under the common law taxation regime may voluntarily apply for VAT.It must be natural or legal persons whose activity is out-side the scope of VAT,insofar as they deli

170、ver:Through exports To oil companies To other VAT liable taxable persons To companies benefiting from the VAT-free purchase optionGroup registration.In Algeria the concept of“VAT group”does not exist,but rather a“tax group.”A tax group includes at least two Algerian entities under the form of a join

171、t stock company“SPA”where one,called“parent company”holds the other(s)at 90%minimum of share capital.A tax group can apply for the consolidation accounts option(i.e.,consolidation of balance sheet accounts)excluding companies operating in O&G activities.If this option is approved,it should apply irr

172、evocably for four years.It is possible to consolidate VAT at the level of a groups head company,which must be an Alger-ian company.Note that it is not possible for a non-established business to be a member of tax group.The group will be considered as a single entity for all tax purposes.Nonetheless,

173、no specific VAT registration of the group is required(tax registration is required covering all taxes).A tax group option is valid for four irrevocable years.Members of a tax group in Algeria are not jointly and severally liable for VAT debts and penal-ties.Instead,each entity of the group is respon

174、sible for its own VAT debts and penalties.Transactions between members of a tax group should not be subject to VAT.AlgeriA 17Fixed establishment.Algerian common tax regime does not provide a specific definition of the concept of permanent establishment(PE).However,its article 162 provides that forei

175、gn compa-nies carrying out an activity in Algeria which requires a presence of their experts for a duration exceeding 183 days per a period of 12 months should be considered as having a taxable presence in the country;consequently,they should register their contracts and keep their books locally.In

176、Algeria,a foreign entity which has a taxable presence/PE in this country should be subject to the common tax regime including the VAT.Non-established businesses.VAT registration is not allowed in Algeria for non-established busi-nesses(i.e.,those that do not have a presence in Algeria).However,if su

177、ch businesses carry out transactions deemed to be within the scope of Algerian VAT,they may be subject to Algerian VAT by way of the reverse-charge mechanism.Tax representatives.A tax representative can be appointed for permanent establishment purpos-es.However,no specific tax representative can be

178、appointed for VAT registration purposes only.Reverse charge.The reverse-charge mechanism is applicable to the supply of services by taxable persons established outside Algeria in case country that has a double tax treaty with Algeria,with no legal presence locally(and if no taxable presence/permanen

179、t establishment in triggered by the onshore activities).The local customer must withhold and pay the due VAT on behalf of the for-eign provider and declare it on monthly tax returns.Domestic reverse charge.There is no domestic reverse charge in Algeria.Digital economy.Internet access royalties are e

180、xempted from VAT until 31 December 2023.There is no registration threshold for VAT purposes only in Algeria.A nonresident that provides electronically supplied services is subject to WHT at the rate of 30%covering all taxes including VAT,the filing and payment of which should be borne by the local c

181、ustomer on behalf of the for-eign provider.This applies for both business-to-business(B2B)and business-to-consumer(B2C)supplies.There are no other specific e-commerce rules for imported goods in Algeria.Online marketplaces and platforms.No further special rules exist for online marketplaces and plat

182、forms in Algeria.Registration procedures.Every individual who would practice an industrial,commercial or non-commercial profession and every legal entity or permanent establishment must,within 30 days of the commencement of its activities,file at the territorially competent tax authority a declara-t

183、ion of existence.The declaration of existence request must be accompanied by:A copy of the Articles of Association and trade register for the legal entities The corporate name The statistical identification number of the company A copy of the lease agreement related to the office Bank account number

184、 If it is a permanent establishment,a copy of the contract related to its local project A copy of the agreement or the administrative authorization if the activity or the place where the activity is performed is subject to a prior authorizationAfter filing the declaration of existence,the taxable pe

185、rson is provided with a registration cer-tificate,which applies as a registration for all tax purposes(there is no specific registration for VAT).Afterward,the taxable person obtains a tax identification card,which includes the tax identification number.18 AlgeriAThe application for registration mus

186、t be submitted by the taxable person itself or its legal repre-sentative or by any other person with a power of attorney to register a taxable person.Accordingly,there is no specific online registration for VAT purposes.Deregistration.There is no special procedure or form required to deregister.It s

187、hould be part of the overall tax deregistration.However,companies that cease to be subject to VAT are required to attach to their declaration a detailed statement of the stocks of goods that they hold in their factories,stores or depots.Changes to VAT registration details.There is no VAT registratio

188、n,but rather a tax registration cover-ing all applicable taxes when required.Any change relevant from a tax perspective should be communicated to the tax authorities as soon as possible.The law fixed a timeline of 10 days only when it is about closing of the company or regarding a permanent establis

189、hment when the con-tract already submitted for registration purposes has been amended.Any change should be com-municated via an official letter(i.e.,paper).D.RatesThe term“taxable supplies”refers to supplies of goods and services that are liable to a rate of VAT,including the zero rate.The VAT rates

190、 are:Standard rate:19%Reduced rate:9%The standard rate of VAT applies to all supplies of goods or services,unless a specific provision allows for a reduced rate or exemption.Examples of goods and services taxable at 9%Sales transactions involving the distribution of electricity and natural gas for a

191、 consumption of less than 250 kilowatt hours(KWH)and 2,500 thermal units per quarter Sales of heavy fuel oil,butane,propane and their mixture consumed in the form of liquefied petroleum gas(GPL-C)Pawnbroking transactions with households Sale of tickets to cinematographic theaters Operations carried

192、out by maritime and air construction sites As a transitional measure and until 31 December 2024,the services related to tourist activities,hotel,spa,classified tourist catering,travel and rental of tourist transport vehicles are subject to the reduced rate of the value added taxThe term“exempt suppl

193、ies”refers to supplies of goods and services that are not liable to VAT and that do not qualify for input tax deduction.Examples of exempt supplies of goods and services Transactions carried out by startup(where the taxable person meets certain conditions to be qualified as“startup company”)Construc

194、tions and services relating to the prospecting,research,exploitation,liquefaction or pipeline transport of liquid and gaseous hydrocarbons,carried out by or on behalf of the nation-al hydrocarbon company SONATRACH Acquisition operations carried out by banks and financial institutions within the fram

195、ework of leasing operations Sales operations relating to pharmaceutical products mentioned in the national drug nomencla-ture Exportations of goods and servicesAlgeriA 19Note that the following are subject to the“lump sum tax regime”natural persons exercising an industrial,commercial or artisanal ac

196、tivities,whose annual turnover does not exceed DA8 mil-lion,excluding some activities listed by the Article 282ter of the Code of Direct Taxes.Option to tax for exempt supplies.Taxable persons making exempt supplies may opt to tax such supplies by request to the tax authorities.E.Time of supplyThe V

197、AT tax point rules depend on the nature of the transaction and the related sector as follows:The tax point for the sale of goods is at the earlier of when the goods are physically delivered or when the invoice is issued(i.e.,the legal delivery)to the customer.The tax point for construction works is

198、the time full or partial payment is made.The tax point for services is the time full or partial payment is made.Deposits and prepayments.Where the deposit is not considered as a part of the price nor as a part of a turnover,then no VAT is due on the deposit,except for a bank deposit,which is conside

199、red as a service provided by the bank.Where the prepayment is part of the total price and therefore subject to VAT two scenarios are to be considered:Goods:the tax point is normally the date of delivery of goods.However,in case of prepayment or advance payment,VAT will be applicable on the amount pa

200、id in advance.Services:prepayments are considered as partial payments of the price,thus the date the prepay-ment made is considered as the tax point.Continuous supplies of services.There are no special time of supply rules for continuous supplies of services.These types of supplies are subject to th

201、e general rules(see above).Goods sent on approval for sale or return.The tax law does not explicitly refer to goods delivered for approval;the delivery is considered as completed once the propriety of the goods is trans-ferred from the seller to the buyer.In that case,the taxable event is the approv

202、al of the client.Reverse-charge services.The reverse-charge mechanism is applicable to the supply of services by taxable persons established outside Algeria in a country that has concluded a double tax treaty with Algeria,with no legal presence locally(i.e.,if no taxable presence/permanent estab-lis

203、hment is triggered by the onshore activities).The local customer must pay the due VAT on behalf of the foreign provider and declare it on monthly tax returns.Leased assets.Leasing operations,services,studies and research as well as any operation other than sales and construction works are subject to

204、 VAT at the date of collection or partial payment.Imported goods.The tax point for imported goods is the date on which the goods are customs cleared.Deemed supplies.There is no special time of supply rules for deemed supplies.These types of supplies are subject to the general rules(see above).F.Reco

205、very of VAT by taxable personsA taxable person may recover input tax charged on goods and services supplied to it,for business purposes.A taxable person generally recovers input tax by offsetting it against output tax charged on supplies made.Input tax includes VAT charged on goods and services supp

206、lied in Algeria,VAT paid on imports of goods and VAT self-assessed by the taxable recipient under the reverse-charge mechanism.A valid tax invoice or customs document is compulsory for a VAT refund claim.20 AlgeriAThe time limit for a taxable person to reclaim input tax in Algeria is until 20 Decemb

207、er of the following year from when the was input tax was omitted.It must be entered separately from the deductible taxes relating to the current period for which the declaration was made.Nondeductible input tax.The right to deduct is not available where there is no conformity with the operating prin

208、ciples of VAT.Moreover,input tax is not recoverable on purchases of goods and services that are not used for business purposes(for example,goods acquired for private use).Examples of items for which input tax is nondeductible Acquisition of passengers cars that are not considered as the main means o

209、f the company Restaurant meals and entertainment for employees and clients Goods,services,materials,real estate and offices that are not used for the purposes of the car-rying on of a taxable activity Hotel accommodation for clients Reception costsExamples of Items for which input tax is deductible(

210、if related to a taxable business use)Service costs related to the business such as consulting reports,studies Lease payments related to the companys office Acquisition of goods to be resold to the companys customersPartial exemption.If an Algerian taxable person performs both exempt and taxable supp

211、lies,it may only recover a portion of input tax.This situation is referred to as“partial exemption.”For the calculation of deductible VAT,partial taxable persons are subject to specific rules that have the effect of limiting the deduction to a fraction of the tax collected on their services and good

212、s.This fraction is equal to the amount of the said tax affected by a general percentage of deduction called“pro rata.”Taxable persons are required to provide,within the first 25 days of March of each year,to the tax department where they are registered,the percentage of deduction they apply during t

213、he current year,as well as the overall elements used to determine this percentage.Capital goods.There are no specific regulations that apply to the refund of VAT for capital goods in Algeria.As such,the general input tax recovery rules apply.Where a capital good is acquired for less than five years

214、and then it is transferred,the VAT deducted upon the assets acquisition should be reversed according to a pro rata for the remaining years.Where a taxable person carries out both activities that are“taxable and exempt”(i.e.,partial exemption),the deduction of the VAT should be made under the prorate

215、 rule.See the subsection above for more details.Refunds.In case of a VAT credit,it is possible to ask for a refund of VAT in the following four cases:Exempt supplies(including exports)Supplies to a sector or clients benefiting from a VAT exemption purchase certificate Termination of taxable activiti

216、es In case of VAT rate differences between input and output taxTaxable persons must meet the following conditions for being eligible for a VAT refund:Hold regular and compliant bookkeeping Provide a copy of the tax role(no tax debts)AlgeriA 21 The reporting of the estimated deductible VAT amount on

217、the monthly declarations by the beneficiary The VAT refund request must be made to the director of the competent tax authorities office no later than the 20th of the month following the quarter for which the refund is requested.Tax-able persons who are“partially exempted”as defined above should subm

218、it their refund request annually(before April 30 of the year related to this VAT credit for which a refund is requested).The amount of VAT credit related to a given quarter for which a refund is requested should be equal or more than DZD1 million.This limitation amount does not apply on taxable pers

219、ons who are“partially exempted”as defined above.Pre-registration costs.Input tax incurred on pre-registration costs in Algeria is not recoverable.Bad debts.A taxable person is entitled to recover any output tax already accounted for to the tax authorities in respect of bad debts(i.e.,where it has no

220、t been able to collect VAT due from its customers).VAT on a bad debt is recovered at the VAT rate that was applied to the original trans-action.The tax law also requires that the taxable person reverses the input tax already deducted given that the supply operation will not trigger an output tax cha

221、rge.Noneconomic activities.Input tax incurred on purchases that are used noneconomic activities is not recoverable in Algeria.G.Recovery of VAT by non-established businessesInput tax incurred by non-established businesses that are not registered for VAT in Algeria is not recoverable.H.InvoicingVAT i

222、nvoices.Any person liable for VAT who supplies goods or services to another taxable person must issue to the latter an invoice or document serving as an invoice.Invoices or documents serving as an invoice,drawn up by the taxable person,must necessarily show,in a distinct manner,the following informa

223、tion:Name and information of the seller(corporate name,legal form of the taxable person)Name and information of the customer(denomination,address,trade register number,tax ID)Date Unit price excluding taxes Total price excluding taxes Nature and rate of the applicable taxes,notably VAT The total amo

224、unt of the invoice including VATCredit notes.A VAT credit note may be used to reduce the VAT charged and to be reclaimed on a supply.It is also possible to cancel an incorrect invoice and issue a revised one.Electronic invoicing.Electronic invoicing is allowed in Algeria,but not mandatory.The invoic

225、e does not need to be verified by the tax authority before issuing.It is,however,recommended to print and store all invoices,in the event that any invoices are requested for inspection in the case of a tax audit by the tax authority.The Algerian law provides some requirements for any issued electron

226、ic invoice,most notably to include the purchaser/the buyer information,the price exclud-ing taxes,the VAT rate and the net amount.If the electronic invoice does not contain such required information,then the invoice may be rejected,notably by the tax authorities for the deduction of the related VAT.

227、Simplified VAT invoices.Authorization of simplified VAT invoices is granted expressly to taxable persons by the administration in charge of the commerce and can only be used for transactions 22 AlgeriAthat are repetitive and regular sales of goods to the same customer.Summary invoices are allowed fo

228、r covering transactions with a customer,for a maximum period of one month.It must contain the prescribed information as outlined above for full VAT invoices.Self-billing.Self-billing is not allowed in Algeria.Proof of exports.To benefit from VAT exemption on exports,the taxable person must:Provide a

229、 document issued by the bank,proving the repatriation of exports payment in foreign currency Join the above document to the annual tax return to justify the exemption of the related profit from corporate income tax(before 30 April of the following year)Foreign currency invoices.Invoices related to i

230、mport/export transactions can be issued in a foreign currency.However,the applicable VAT is generally issued in a separate invoice in the domestic currency,which is the Algerian dinar(DZD).Supplies to nontaxable persons.There are no special invoicing rules for supplies to nontaxable persons in Alger

231、ia.As such,full VAT invoices are required.Records.In Algeria,examples of what records that must be held for VAT purposes include accounting documents and in particular the invoices,contracts,purchase orders,monthly tax returns,identification information related to suppliers and customers.Records mus

232、t be kept for a minimum of four years,in line with the tax audit prescription.How-ever,for Algerian trade legislation the prescription is fixed at 10 fiscal years.In Algeria,compa-ny books and records must be held within the country.Such records must be kept at the level of the local company(i.e.,in

233、 Algeria)and should be available to be provided in a timely manner in the case of tax audits.Record retention period.Records of invoices must be kept for a period of 10 years,in line with the Algerian trade legislation.Electronic archiving.Electronic archiving is allowed in Algeria.Documents can be

234、archived elec-tronically and physically.However,in case of a tax audit,the physical document should be made available for the tax authorities.I.Returns and paymentsPeriodic returns.In principle,any person registered for VAT is required to file periodic returns and pay the relevant tax due to the Tre

235、asury.The said return is called G-50 form and is filed monthly to the competent tax authority(within the first 20 days following the end of the month).The form must state all information related to turnover,collected,payable and deductible VAT.Periodic payments.Payments are to be made alongside the

236、monthly tax return filling and should be remitted to the tax authorities before the 20th of the following month.In the case of payments after the deadlines,penalties for late payment apply,counted from the date on which they should have been paid.However,when the electronic payments made within the

237、given deadlines suffer a delay not incumbent either on the taxable person or on the financial institution,provided that this delay does not exceed 10 days from the date of the payment,the late penalties do not apply.Electronic filing.Electronic filing is mandatory in Algeria for certain taxable pers

238、ons.VAT must be reported electronically on the monthly tax return(G50 form).If the taxable person is regis-tered at the Direction of Large Companies(DGE),which is the tax authority where large com-panies register,the monthly tax return should be submitted on DGEs online platform called“JIBA-YATIC.”I

239、t is recommended to print it afterward to keep it in the taxable persons records.AlgeriA 23If the taxable person is registered at a regional tax inspection,the monthly tax return should be printed and remitted physically to the tax collector.It is always recommended to keep physical copies at the le

240、vel of the taxable person,as they are required in case of a tax audit.Payments on account.Payments on account are not required in Algeria.Special schemes.Lump sum tax regime.The lump sum tax regime is a single global tax regime that covers VAT,PIT(personal income tax)and TAP(tax on professional acti

241、vity)and applicable to natural persons exercising an industrial,commercial as well as artisanal activities,whose annual turnover does not exceed DA8 million,excluding some activities listed by the Article 282ter of the Code of Direct Taxes.The Code of Direct Taxes sets the rate of lump sum tax as fo

242、llows:5%,for the activities of production and sale of goods and 12%,for other activities.Furthermore,new taxable persons that meet the scope of the lump sum tax regime,may opt to be taxed according to the standard regime when they file their declaration of existence,as pro-vided for in Article 183 o

243、f the Direct Taxes and Similar Taxes Code.Annual returns.Annual returns related to VAT are not required in Algeria.However,an annual tax return in term of corporate income tax(CIT)is required before April 30 of FY(n+1).Supplementary filings.In the case of a taxable person carrying out wholesale acti

244、vity,a dedicated template,including the information related to the clients,must be filed.This template should be submitted on an annual basis.Correcting errors in previous returns.Omissions and errors can be corrected voluntarily by sub-mitting a supplementary monthly tax return(G50 form)and includi

245、ng the additional tax amount to be paid.An explanative letter should also accompany the corrective returns.Digital tax administration.There are no transactional reporting requirements in Algeria.J.PenaltiesPenalties for late registration.Taxable persons who fail to subscribe their declaration of exi

246、stence within the required time are liable to a fiscal fine amounting at DZD30,000.Penalties for late payment and filings.The late filing of the monthly tax return(G50 form)gives rise to the application of a penalty of 10%.The penalty is based on the amount of unpaid VAT due.This penalty is raised t

247、o 25%after the Administration has given notice to the person liable by registered letter with acknowledgment of receipt to regularize its situation within a period of one month.Finally,it is specified that the date of the deposit to be held will be that of the“deliv-ery”to the receiver,therefore the

248、“reception”by the latter and not the sending by the taxable person.Tax authorities can proceed with internal assessments based on the information provided by the taxable person,its clients and its suppliers.Penalties for errors.When following an audit,it appears that the annual turnover declared by

249、a taxable person is insufficient or in the case of a deduction made in error,the amount of the evaded rights(i.e.,the unpaid tax due to the error)is increased by:10%when the amount of rights evaded,per year,is less than or equal to DZD50,000 15%when the amount of rights evaded,per exercise,is greate

250、r than DZD50,000 and less than or equal to DZD200,000 25%when the amount of duties established,per financial year,is greater than DZD200,000 In case of fraudulent maneuvers,the penalty is set at 100%on all rights.In addition,the tax authorities could instruct to apply the below correctional sanction

251、s(“Penalties for fraud”)in case the evaded amount exceeds 10%of the amount due.24 AlgeriAThere are no specific penalties associated with the late notification or failure to notify the tax authorities of changes to a taxable persons VAT registration details.For further details,see the subsection Chan

252、ges to VAT registration details above.Rulings.Taxable persons registered with the DGE can submit a ruling request to the tax authori-ties to be advised on the compliant way of proceeding.A ruling can be opposed to the tax admin-istration to challenge its position.Penalties for fraud.The breach of th

253、e laws and regulations governing VAT are sanctioned by tax or correctional penalties,depending on whether the offenses have been committed in good faith and without fraudulent intent or,on the contrary,the offense is due to fraudulent acts committed knowingly.The penalties for those who knowingly de

254、creased or tried to decrease the total or a part of the taxable basis or the applicable tax are:A criminal fine of DZD50,000 to DZD100,000,where the amount of the duties evaded does not exceed DZD100,000 Imprisonment from two months to six months and a fine of DZD100,000 to DZD500,000,or only one of

255、 these two penalties when the amount of duties evaded is greater than DZD100,000 and does not exceed DZD1 million Imprisonment from six months to two years and a fine of DZD500,000 to DZD2 million,or only one of these two penalties when the amount of duties evaded is greater than DZD1 million and do

256、es not exceed DZD5 million Imprisonment from two years to five years and a fine of DZD2 million to DZD5 million,or only one of these two penalties when the amount of duties evaded is greater than DZD5 million and does not exceed DZD10 million Imprisonment from 5 to 10 years and a fine of DZD5 millio

257、n to DZD10 million,or only one of these two penalties when the amount of duties evaded is greater than DZD10 millionPersonal liability for company officers.Company officers cannot be held personally liable in the case of non-voluntary errors and omissions.However,in the case of fraudulent actions,le

258、gal representatives and managers of the companies are jointly and severally liable with the company and would be subject to sanctions mentioned in the above subsection Penalties for fraud.Statute of limitations.The statute of limitations in Algeria is four years.Hence,the tax authorities may review

259、the last four years returns to identify errors and charge penalties.25A GMT+1Ernst&Young Angola Limitada Presidente Business Center Largo 17 de Setembro,n.3 3.PisoSala 341 Luanda AngolaDirect all queries regarding Angola to the persons listed below in the Lisbon,Portugal,office.Indirect tax contacts

260、 Amilcar Nunes+351 217-912-218 Lisa Rato+351 962 104 076 +244 944 218 129 Value-added tax(VAT)entered into force in Angola on 1 October 2019,revoking the existing consumption tax(Imposto de Consumo).A.At a glanceName of the tax Value-added tax(VAT)Local name Imposto sobre o valor acrescentado(IVA)Da

261、te introduced 1 October 2019Trading bloc membership Southern Africa Development Community African Continental Free Trade Area(AfCFTA)Administered by Administrao Geral Tributria(AGT)(https:/agt.minfin.gov.ao/PortalAGT/)VAT rates Standard 14%Reduced 5%,7%Other Zero-rated(0%)and exempt VAT number forma

262、t 5 4 2 3 4 5 6 7 8 9 VAT return periods MonthlyThresholds Registration AOA10 million Deregistration Less than AOA10 million Recovery of VAT by non-established businesses No B.Scope of the taxVAT applies to the following transactions:The supply of goods or services made,used or exploited in Angola b

263、y a taxable person The importation of goods26 AngolAFor VAT purposes,the territory of Angola includes the land and water,as well as the subsoil in the terms prescribed in article 3 of the Republic of Angolas Constitution,as well as other territo-rial or international areas where law or international

264、 agreements recognize Angolas tax jurisdic-tion,such as the concessions map.Effective use and enjoyment.To avoid instances of non-taxation or double taxation,jurisdictions can apply“use and enjoyment”rules that allow a service that is“used and enjoyed”in the juris-diction to be taxed or prevent a se

265、rvice that is“used and enjoyed”outside the jurisdiction from being taxed.If a service is taxed in the jurisdiction under the“use and enjoyment”provisions,a non-established supplier of the service may be required to register for VAT in every jurisdiction where it has customers that are not taxable pe

266、rsons.In Angola,no services are subject to the“use and enjoyment”provisions.The Angolan VAT Code set forth,as a general rule,that the place of supply of services is deemed to be located in Angola whenever the acquirer has herein its place of business/head office or has a permanent establishment from

267、 which the services are acquired or,in the absence of such,when the acquirer has domicile or habitual residence in Angola.However,the Angolan VAT Code also foresees exceptions to the mentioned place of supply of services general rule determining that“without prejudice to the provisions in the preced

268、ing paragraphs to this,the supply of services whose effective use and enjoyment takes place in national territory are always subject to VAT.”The definition of“effective use and enjoyment”is not established in the VAT law nor exist any guidelines from the AGT in this regard.However,the AGT tends to c

269、onsider that services,even if physically carried on in full outside Angola,are herein located in case they are somehow con-nected with Angola.Transfer of a going concern.Normally the sale of the assets of a VAT-registered or VAT-registrable business will be subject to VAT at the appropriate rate.How

270、ever,a transfer of a business as a going concern(TOGC)may be outside the scope of the tax under certain conditions.A TOGC is the sale of a business or part of a business capable of separate operation,including assets.Where the sale meets the conditions,the supply is treated as outside the scope of V

271、AT.In Angola,a TOGC is treated as outside the scope of VAT where the following conditions are met:The goods and services transferred are capable(as a whole)of forming a separate business in their own right The recipient(transferee)is a taxable person or becomes a taxable person as a result of the tr

272、ansfer,and performs exclusively output transactions that entitle the right of VAT deductionTransactions between related parties.In Angola,there are no specific rules that indicate the value for VAT purposes for transactions between related parties.However,the VAT Code sets forth that VAT related to

273、simulated transactions(or simulated price)is not recoverable.C.Who is liableA taxable person is any business entity or individual that makes taxable supplies of goods or services or importation of goods in the course of a business in Angola.A taxable person that begins activity must notify the VAT a

274、uthorities of its liability to register for VAT purposes.Nevertheless,if the taxable person only incurs a one-off single taxable transaction it will not be required to file the declaration of beginning of activity at the tax authorities regarding such mat-ter.In Angola,there are three VAT regimes in

275、 place:General VAT regime,which is applicable to taxable persons with an annual turnover(and/or import of goods)of more than AOA350 million.Simplified VAT regime,which applies to taxable persons whose annual turnover(and/or import of goods)is higher than AOA10 million and lower than AOA350 million.E

276、xclusion VAT regime,applicable to taxable persons with annual turnover lower than AOA10 million.Under this regime,taxable persons are treated as final consumers(they do not charge VAT on the output transactions nor can they deduct any input tax).AngolA 27From 1 January 2021 the transitory VAT regime

277、 has been eliminated and entities with an annual turnover and/or import of goods transactions higher than AOA350 million must move to the general VAT regime and must comply with local bookkeeping and Standard Audit File for Tax(SAF-T)rules from that date,as well as with the remaining VAT obligations

278、.As a general rule,imports of goods are subject to VAT.The VAT taxable base is the customs value of the goods,obtained according to the customs legislation in force,including the following(if not included already):customs duties,other taxes(except for VAT)or administrative charges due on the import

279、of goods and ancillary costs(such as packaging,transport,insurance and other charges),including ports and airports costs.Exemption from registration.If the taxable person only incurs a one-off single taxable transaction,it will not be required to file the declaration of beginning of activity at the

280、tax authorities regard-ing such matter.Voluntary registration and small businesses.There is the possibility of voluntary registration to the VAT general regime if the following cumulative requirements are met:Have organized bookkeeping and updated registration with the Angolan tax authorities No tax

281、 or customs debts Have ERP systems prepared to issue invoices according to the current rules in force Be prepared to submit by electronic means the VAT returns and accounting and invoicing infor-mation(SAF-T file)Group registration.Group VAT registration is not allowed in Angola.Fixed establishment.

282、In Angola there is no legal definition of a fixed establishment for VAT pur-poses.The AGT does not provide such a definition.Mainly,the only criterion applicable is whether or not the taxable person performs taxable transactions located in Angola.Non-established businesses.A“non-established business

283、”is a business that is not registered nor has permanent establishment in the territory of Angola.Non-established businesses that perform taxable operations in Angola should nominate a representative who is a taxable person for VAT purposes.The representative must comply with all the obligations crea

284、ted under the VAT Code for taxable persons,namely the declaration and registration obligations.The representative will be liable for the payment of the VAT due.The Angolan VAT Code sets forth that non-established business may opt for a simplified VAT registration(under which there is no requirement

285、to nominate a tax representative).At the time of preparing this chapter,however,such option depends on further regulation,which has not yet been published(but is expected to occur within the upcom-ing months).If no tax representative is nominated,the VAT should be self-assessed and paid by the purch

286、aser(if the purchaser is a taxable person for VAT purposes).Tax representatives.As mentioned above,non-established businesses should nominate a tax representative for VAT purposes in Angola.In case of default(nonpayment of VAT due within the legal deadline),the representative and the non-established

287、 business are jointly liable for the payment of the VAT due.Reverse charge.The reverse-charge mechanism is applicable whenever a non-established entity does not nominate a VAT representative and the services are deemed located in Angola,notably:Provision of services related with real estate properti

288、es located in Angola Accommodation and catering services supplied in Angola Provision of services connected with movable assets made(total or partially)in Angola Provision of services connected with the services relating to the access of cultural,artistic,sporting,scientific,educational and similar

289、events,including the access of fairs and exhibitions(as well as the provision of services considered auxiliary so such activities)in Angola28 AngolA Leasing of motor vehicles,pleasure crafts,aircraft or any other vehicles when they are put at the disposal of the recipient in Angola Provision of serv

290、ices related with the transport of passengers in Angola Other services used,or which exploitation occurs in AngolaDomestic reverse charge.There are no domestic reverse charges in Angola.Digital economy.There are no specific VAT rules in Angola for digital supplies.The general rule for the place of s

291、upply is that the services are deemed to be located/supplied in Angola whenever the customer has in Angola its place of business/head office or has a perma-nent establishment,from which the services are acquired,or,in the absence of such,when the customer has domicile or habitual residence in Angola

292、.However,the VAT Code sets forth excep-tions to such rule,by establishing other(taxation)drivers,regardless of the place where the customer is located.One of these exceptions is established by the“use and enjoyment”criteria outlining that the supply of services whose effective use and enjoyment take

293、s place in national territory are always subject to VAT.The definition of effective use and enjoyment is neither fore-seen in the VAT law nor do any guidelines exist from the Angolan tax authorities in this regard.Therefore,in practice,nonresident providers of electronically supplied services will b

294、e deemed to be located in Angola under the use and enjoyment criteria.Nonresident providers of electronically supplied services for business-to-consumers(B2C)sup-plies are required to register and account for VAT on their supplies in Angola.Nonresident providers of electronically supplied services f

295、or business-to-business(B2B)sup-plies are not required to register and account for VAT in Angola.Instead,the customer is required to self-account for the VAT due,by way of the reverse-charge mechanism.See the Reverse-charge subsection above.There are no other specific e-commerce rules for imported g

296、oods in Angola.Online marketplaces and platforms.No special rules exist for online marketplaces and platforms in Angola.Registration procedures.For VAT purposes,a declaration of beginning of activity(Form Modelo 06)must be filed 15 days prior to starting to perform the activity,through electronic me

297、ans.No other documents are required to be filed as long as the taxable person is already registered at the Commercial Registry.If this is not the case,further documents may be required.Deregistration.Individuals or companies subject to VAT must,within 30 days from the date of termination of activity

298、,submit a Declaration of Cease of Activity through electronic means.The activity is deemed ceased when one of the following conditions is verified:The company is no longer trading for a period exceeding two consecutive years(note that in this situation AGT will presume that the goods of the entity t

299、hat still exist were sold)Extinction of the assets of the company(the goods were sold or were used to private use of the titular,the staff or,more generally,for purposes different of the companys business)Transfer of the property of the entity(e.g.,TOGC)AGT can declare,on their own authority,the ces

300、sation of activity,if considering that there are grounds to sustain that the companys activity is being used for fraudulent purposesChanges to VAT registration details.When there is a change in certain VAT registration details(such as name,address,starting/stopping to make imports,exports),the taxab

301、le person is obli-gated to inform the tax authorities of such changes within the following 15 days after the change through the submission of a declaration of changes of activity by electronic means.AngolA 29D.RatesThe term“taxable supplies”refers to supplies of goods and services that are liable to

302、 a rate of VAT.The VAT rates are:Standard rate:14%Reduced rate:5%,7%Zero-rate:0%The standard rate of VAT applies to all supplies of goods or services,unless a specific measure provided for a reduced rate,the zero rate or an exemption.There is also a 2%VAT rate that is applicable to the import of goo

303、ds and the subsequent onward supplies in the province of Cabinda(except for oil sector,light passenger vehicles,alcoholic beverages,tobacco,jewelry and watches).In addition,a 1%VAT rate applies to the import of food products and onward supplies in the province of Cabinda.The 2022 State Budget Law se

304、t forth a new reduced VAT rate of 7%,applicable to certain food products,agricultural inputs,hotel accommodation and restaurant services.This new reduced VAT rate of 7%entered into force on 1 January 2022.Such rate is expected to continue under force in 2023,pursuant to the 2023 State Budget Law,but

305、 at the time of preparing this chapter,the Budget Law is not yet finalized(indeed the Proposal Budget Law has not yet been released).Examples of goods and services taxable at 0%Exports:Dispatched to a foreign country by the seller or someone acting on their behalf Repair,maintenance lease and other

306、operations relating to the ships identified above as well as for aircraft used by companies that develop cross-border traffic activities Supply,conversion,repair,maintenance,freight and rental,including leasing,of vessels and aircraft affected to air and sea navigation companies that are principally

307、 engaged in interna-tional traffic,as well as the transmission of supply goods placed on board the referred vessels and aircraft,as well as services rendered to meet their direct needs and those of its cargo Supplies of goods destined to international organizations recognized by Angola or to mem-ber

308、s of the same organisms within the limits and with the conditions established in interna-tional agreements concluded by Angola Transport of passengers,cargo or mail proceeding from abroadExamples of goods and services taxable at 5%Certain food products(for example,sugar cane)Agricultural inputs(for

309、example,live animals,seeds and fertilizers)Examples of goods and services taxable at 7%Certain food products(listed in Annex I of OGE 2022,for example,milk,beans,rice,water,meat,fish,eggs,soap)Agricultural inputs(listed in Annex I of OGE 2022)Hotel and restaurant services,only if the correspondent s

310、ervice providers comply cumulatively with the following:Registration of all immovable property and/or motor vehicles that are owned or used by the service provider Issuance of invoices through electronic invoicing systems Submission of the due tax returns from previous yearsThe term“exempt supplies”

311、refers to supplies of goods and services that are not liable to VAT and that do not qualify for input tax deduction.30 AngolAExamples of exempt supplies of goods and services Medication and other related products for therapeutic and prophylactic ends Wheelchair and similar vehicles destined for peop

312、le with disabilities as well as braille machines and other gadgets used to correct learning disabilities Books Leasing and letting of immovable property(excluding financial leases and the accommodation services provided by hotels and entities with similar activity)Collective public transportation se

313、rvices Banking and financial operations carried out by banking financial institutions and nonbanking financial institutions,including the financial leasing,apart from these activities if a tax or a consideration is charged by the service provided Insurance activities Supply of fuels according to Ann

314、ex II of the VAT CodeOption to tax for exempt supplies.It is possible to waive the VAT exemption related to the supplies of medication and other related products for therapeutic and prophylactic ends as well as the supplies of books.Taxable persons that want to waive the VAT exemption must file a de

315、claration,by electronic means,to the General Tax Authorities and meet certain requirements.If AGT does not reply within 30 days,the request is tacitly accepted.Once accepted,this waive is valid from 1 January of the following civil year(unless the taxable person starts its activity during the year,i

316、n which case the taxable person can request to waive the exemption from the beginning of its activity).E.Time of supplyThe time when VAT becomes due is called the“time of supply”or“tax point.”Under the gen-eral rule,an invoice should be issued by the fifth business day following the date of the supp

317、ly.The actual tax point becomes the date on which the invoice is issued.However,if no invoice was issued,tax becomes due on the fifth business day after the basic tax point.If the payment occurs before the invoice is issued,even if partially,the corresponding VAT is due at the same time of the payme

318、nt.The same is applicable in case payment occurs or invoices are issued before the finalization of the taxable operations.The basic time of supply for goods is when they are made available to the client or at the time the transaction was fully or partially settled(before the client has received the

319、goods).There are no special time of supply rules in Angola for construction works.The basic time of supply for services is when they are rendered or at the time the referred provi-sion of services was fully or partially settled(before the service has been provided).Deposits and prepayments.For advan

320、ce payments,the tax point is the date on which the advance payment is received.The supplier must issue an invoice as soon as advance payment is received.Continuous supplies of services.With regard to continuous supplies of services,the time of supply occurs at the end of the period concerning each p

321、ayment.However,when the payment schedule is not defined or exceeds 12 months,the VAT is due at the end of each 12-month period.Goods sent on approval for sale or return.As a general rule,when goods are made available before the sale takes place,a taxable supply of goods is deemed to have taken place

322、 when the underlying contract is finalized.Additionally,when goods are sent on a consignment basis,tax is due if after 180 days the acquirer does not return the goods.Reverse-charge services.The rules stated above also apply to reverse-charge services.AngolA 31Leased assets.Since leasing agreements

323、are usually considered a continuous supply of services,the time of supply occurs at the end of the period foreseen for each payment,under the rules above mentioned.Imported goods.The tax point for the importation of goods will be in the moment that the for-malities of customs duties are completed.Pe

324、rsonal use.When company goods are permanently assigned to an employee for personal use the tax point occurs when the assignment takes place.The same rule is applicable when pri-vately owned goods are assigned to company use.F.Recovery of VAT by taxable personsA taxable person may recover input tax i

325、ncurred with the acquisition of goods and services deemed indispensable for the maintenance of the business.A taxable person generally recovers input tax by deducting it from output tax charged on the supplies of goods or services carried out as well as tax paid on the import of goods.Input tax incl

326、udes VAT charged on goods and services supplied in Angola,VAT paid on import of goods and VAT self-assessed on the reverse-charge services.The time limit for a taxable person to reclaim input tax in Angola is two months,since input tax should be deducted in the VAT return of the month of issuance of

327、 the underlying invoice or in the following month.To deduct VAT,the taxable person must be in possession of invoices or other equivalent docu-ments compliant with the legal requirements applicable for the invoices issuance.Nondeductible input tax.There are some types of costs that,by their nature,ma

328、y easily be used for personal purposes.As such,the legislator has opted to deny the right to input tax on these expenses except when the same constitute the core of the entitys activity.Examples of items for which input tax is nondeductibleInput tax is not deductible on the following operations:Expe

329、nses with acquisition,manufacturing or import,leasing(including financial lease),trans-formation and repair of tourism cars(being those considered as vehicles,with trailer included,that are not exclusively used for the carriage of goods or to perform an agricultural,commercial or industrial activity

330、,or even used for cargo and passenger or only for passenger transport purposes,it does not have more than 10 seats,with the inclusion of the driver),leisure boats,helicopters,airplanes,motorbikes and motorcycles Expenses relating to housing,food,beverages and hospitality expenses Expenses relating t

331、o acquisition or import of tobaccoSpecial input tax rules apply to oil companies.Examples of items for which input tax is deductible(if related to a taxable business use)All except the abovementioned ones and resulting from simulated operations.Partial exemption.Input tax directly related to exempt

332、supplies of goods or services is not gener-ally recoverable.If an Angolan taxable person makes both exempt and taxable supplies,it may not recover input tax in full.This situation is referred to as“partial exemption.”The VAT Code provides for two methods to recover VAT when a company makes both exem

333、pt and taxable supplies.The first that should be applicable by rule is a pro rata method according to which VAT is only deductible in the same ratio as the annual amount of operations that origi-nate deductibility vs.the exempt operations that dont give rise to deductibility.32 AngolAThere is also a second method,referred to as the“direct allocation method,”which prescribes the real allocation of