As of 1st January 2017, the VAT Code was significantly amended and republished by Law no. 13/2016, of 30 December.
One of the main amendments concerns the provisions regarding the location of electronic services - such as the supply of websites, music, games, provision of computer sites, etc. – whereas VAT shall be due in Mozambique provided that the acquirer is a taxable person resident therein – this is a similar provision to the EU VAT rules. On the other hand, such services shall not be subject to VAT in Mozambique if supplied by a resident service provider to a non-resident acquirer.
On the other hand, new rules have been introduced regarding exemptions, refunds, VAT credits and electronic invoicing. We would highlight the following amendments:
- Taxable subjects covered by a VAT exemption are required to submit a new return
- Invoices must now include bank ID
- Taxable subjects are now required to submit electronically detailed information regarding invoices issued in taxable operations
Moreover, a new deadline has been introduced for submitting tax returns claiming a tax credit – 15th day of the following month in which the operations were concluded.
Furthermore, the definition of the Mozambican territory has also been amended and extended in order to include the development areas of natural resources.
The exemption applicable to the acquisition of services related to drilling, exploration and infrastructures construction services for the mining and oil and gas sectors at the prospecting and exploration stages was revoked. This amendment was quite controversial and gave rise to some debate since the revocation of the exemption was not contemplated in the republished version of the VAT Code. This inconsistency was solved through a Ministerial Order dated of June 8th, whereas it has been clarified that the aforementioned exemption was in fact eliminated. The diploma also clarifies that any artistic, scientific, sporting, entertainment, educational services or ancillary services, as well as transport services provided within the Mozambican territory should be deemed as located therein. Annexes I, II and III on VAT-exempted goods were also amended in order to bring these lists in line with the new Customs Tariff.
Finally, Decree 8/2017, of 30 March 2017, has also amended some provisions of the VAT Regulations, notably related with VAT compliance, credits and invoicing, notably the amendment of the provisions regarding the fulfillment of VAT obligations, required documentation on VAT credits and new rules for record keeping.
All information contained herein are of general nature and for informational purposes only. It does not therefore intend to be nor shall be construed as legal advice on any of the matters addressed.
