Angola Launches E-Invoicing and Taxpayer Rewards Reform

The Angolan government is taking significant strides towards modernizing its tax system with the impending introduction of electronic invoicing for businesses and a rewarding invoice regime for individual taxpayers.

This development, announced by the President of the General Tax Administration Council (AGT), José Leiria, signals a strong commitment to enhancing tax compliance, combating tax evasion, and fostering greater transparency within the economy.

The proposal for these transformative measures was recently reviewed during the first ordinary meeting of the Economic Commission of the Council of Ministers, presided over by President João Lourenço in Luanda.

Electronic Invoicing for Businesses: A Gradual Rollout

According to José Leiria, the implementation of electronic invoicing will mandate that businesses submit their invoices to the AGT in a timely manner.

This move towards digitalization is expected to streamline tax reporting processes, reduce administrative burdens, and improve the accuracy of financial records. The rollout will be phased, initially focusing on large taxpayers before gradually encompassing all businesses.

Rewarding Invoice Regime for Individual Taxpayers: Incentivizing Compliance

In a parallel effort to encourage tax compliance at the individual level, the government is proposing a "rewarding invoice regime." This initiative will offer regular prizes to individual taxpayers who request invoices for their purchases.

By incentivizing this practice, the AGT aims to increase public awareness of the importance of demanding invoices and empower consumers to play an active role in monitoring business tax compliance.

José Leiria emphasized the dual objective of this regime: "The objective is to increase literacy about the importance of requesting invoices and ensure that companies are audited by end consumers."

The mechanics of the rewarding invoice regime will involve regular draws for invoices requested by consumers, conducted in partnership with the National Gambling Institute.

While the specifics regarding the prizes and the frequency of the draws are yet to be defined by the Minister of Finance through an Executive Decree, the AGT has assured that efforts are underway to make the rewards as appealing as possible, thereby maximizing participation.

Broader Tax Reforms Underway

The introduction of electronic invoicing and the rewarding invoice regime are part of a broader package of tax reforms being considered by the Angolan government. Other significant proposals discussed by the Economic Commission include:

• A new Personal Income Tax Code: Aiming to align the taxation of individual income with international best practices by shifting from a cellular system to a unified taxation model.
• Amendments to the General Tax Code: Focused on streamlining tax procedures, ensuring greater legal certainty, and fostering a fairer relationship between taxpayers and tax administration.
• Revisions to the Tax Benefits Code: Seeking to adapt the legal and fiscal framework to evolve economic and tax realities.
• A new Customs Code: Modernizing the regulatory framework for customs activities, replacing the existing code from 2006 and aligning it with the current structure of the AGT.

José Leiria affirmed that these comprehensive measures are designed not only to adapt the tax legislation to contemporary realities but also to bolster the efficiency of the tax administration and promote greater fiscal justice.

As Angola embraces the digital transformation of its tax system with electronic invoicing, businesses operating or planning to operate in the country should stay informed about these upcoming changes.

As Angola and other nations modernize their tax systems with e-invoicing, ensure your business is prepared.

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