Angola revises its VAT Code: 7% simplified regime, Kz 25 million and Kz 350 million turnover bands, and new exemptions

What changed in detail

Lei n.º 14/23 de 28 de Dezembro was approved by the National Assembly on 15 November 2023 and promulgated on 21 December 2023. It was published in the Diário da República, I Série, n.º 246, from page 8519. It amends Angola’s VAT Code (Código do IVA) and orders the Code republished in full. Under article 6.º it enters into force on publication, 28 December 2023.

Rates (article 19):

• 14% general rate;
• 7% under the simplified regime;
• 7% for hotel and restaurant services, but only for providers that register their property and vehicles, invoice through electronic invoicing systems and have filed the prior year’s returns;
• 5% for the basic foods and agricultural inputs in Annexes I and II;
• 1% for goods under the Cabinda special regime, except the goods in Annex III.

Turnover bands:

• below Kz 25,000,000: exclusion regime (article 60);
• from Kz 25,000,000 to below Kz 350,000,000: simplified regime (new article 69.º-A);
• from Kz 350,000,000: general regime, or above Kz 25,000,000 for manufacturers (article 62).

Exemptions:

• medical services are exempt except those for aesthetic purposes, which are taxed;
• the book exemption now covers digital books but excludes pornographic content;
• transfers of immovable property are exempt.

What it means

The revised Code is still the base text. The 2025 State Budget law, Lei n.º 18/24, built on it. It added a 5% rate, on application, for industrial equipment imported or sold by the manufacturer. It also required businesses whose turnover crosses the exclusion or simplified thresholds to change regime by the end of the following month.

The 7% hotel and restaurant rate is conditional. A provider that does not invoice electronically pays 14%. Angola is extending mandatory electronic invoicing to all General and Simplified regime taxpayers from 1 January 2027, so those conditions matter more, not less.