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The new Self-Invoicing Legal Regime, published by Presidential Decree no. 194/20, entering into force on August 24th, has amended previous rules foreseen in the Invoices and Equivalent Documents Legal Regime.

This new regime takes into consideration the significant increase of economical agents acting in Angolan economy’s informal sector during the Covid-19 pandemic, which provokes greater difficulties in the issuance of invoices by these agents. Furthermore, the new regime encourages the integration in the formal sector of the economy, permitting the inclusion of these economical agents in the tax system.

This regime is applicable to entities with tax residency in Angola, which have organized accounts and who, in the exercise of economic activities, acquire goods from the sectors of agriculture, silviculture, apiculture, aquaculture, aviculture, fisheries, livestock or others, or any services, when the supplier is an individual without capacity to issue invoices.

The invoices/receipts issued under this regime must contain, among others and in addition to the requirements set forth by the Invoices and Equivalent Documents Legal Regime:

  • tax number or other identification number of the supplier;
  • the tax number, name or designation and headquarters address of the acquirer;
  • the description of the goods/services;
  • the unitary and total price in Kwanzas;
  • the date on which the goods/services were transferred/provided;
  • mention “Autofacturação” (self-invoicing);
  • the tax to which the transactions are subject and its value.

Documents issued under this regime cannot exceed 20% of the total cost of goods sold, commodities consumed and the costs of supplies and services from third parties. On the estimate of these costs, costs incurred by the acquirer subject to the self-invoicing regime are excluded. Costs of self-invoicing shall be duly detailed in the accounts of the acquirers and respective financial statements.

When the products purchased in sectors subject to self-billing (detailed in the third paragraph) are exclusively responsible for the pursuance of the corporate object of the acquirer company, self-invoicing costs may be considered until 60%, for costs’ calculation.

Entities carrying out self-invoicing in the acquisition of the goods referred above, are required to withhold tax at the rate of the provisional settlement regime on sales foreseen in the Corporate Tax Code.

Entities carrying out self-invoicing in the acquisition of services are required to withhold tax in accordance with the taxation regime on services, foreseen in the Personal Income Tax Code.

The issuance of these invoices/receipts without the mandatory requirements foreseen in the new regime constitutes a tax administrative penalty, punishable with fine.

If the wholesaler does not inform the Tax Office regarding a transaction of value superior to AKZ 1,000,000.00 (one million Kwanzas), he incurs in a tax administrative penalty, punishable with fine of 15% of the transaction value.

Article by Duarte Marques da Cruz

Duarte Marques da Cruz is partner of the Portuguese law firm MC&A, specialized in international business advisory, with a special focus in Lusophone markets. With extensive experience in the Energy sector (Renewables and Oil & Gas) and in International Taxation, he has supported international companies in major upstream, midstream transactions and projects, including in implementing, exploration and development programs. Duarte has also supported international clients in other areas of practice, namely, Mining, Transport & Logistics, Regulatory Compliance and Mergers & Acquisitions in Mozambique, Angola and Portugal.