Angola VAT Calculator – Simplify Your Tax Calculation 2025
ANGOLA VAT CALCULATOR
In Angola, the standard VAT rate is set at 14%, covering a wide range of goods and services under its tax base. The following reduced VAT rates apply to specific transactions:
- 1% for imports and supplies of goods in the Province of Cabinda.
- 2% for port services and public water distribution in Cabinda.
- 5% for food items and agricultural products listed in Tables I and II of the VAT Code.
- 7% for hotel and restaurant services, with conditions such as vehicle and property registration under the company’s name and electronic invoicing.
- 7% under the simplified VAT regime, excluding the lease of immovable property, which is exempt.
A simplified VAT regime applies to VAT-taxable entities in Angola with a turnover or imports between AKZ 10,000,000.00 and AKZ 350,000,000.00 in the previous financial year. This regime helps streamline tax compliance for businesses within this range.
Angola Value Added Tax (VAT)
Angola introduced its Value Added Tax (VAT) system in 2019, replacing the former sales tax to streamline tax collection and align with international standards. The VAT system operates on a calendar year basis, from January 1 to December 31, and applies to most goods and services. Over time, Angola has made adjustments to VAT rates and exemptions to support economic growth and improve tax compliance across sectors.
Since its implementation, Angola’s VAT system has undergone several reforms to improve efficiency and broaden the tax base. The government has introduced measures to simplify VAT compliance for businesses, including a simplified VAT regime for entities with specific turnover ranges. These changes aim to enhance tax revenue, attract investment, and strengthen Angola’s overall economic stability while ensuring businesses adhere to local tax regulations.

The Standard VAT Regime in Angola
Entities with an annual turnover or import operations exceeding AOA 350 million are automatically subject to the standard VAT regime. Manufacturing entities with a turnover or import operations over AOA 25 million in the previous year can also be included under this regime. This regime ensures that large businesses or importers are aligned with full VAT requirements.
Taxpayers operating under the standard VAT regime are required to:
- Issue Invoices: They must issue invoices and charge VAT on all taxable transactions.
- File Monthly VAT Returns: Taxpayers need to file VAT returns by the last working day of the month following the taxable month and pay the difference between the VAT collected (output VAT) and the VAT paid on purchases (input VAT).
- Maintain Proper Accounting Records: Businesses must keep accurate records in compliance with the Angolan General Accounting Plan (PGC) and Angolan GAAP.
This regime is designed to ensure comprehensive VAT collection for large-scale operations.
The Simplified VAT Regime in Angola
The simplified VAT regime applies to businesses with an annual turnover or volume of import operations between AOA 25 million and AOA 350 million. This regime is intended to ease compliance for small to medium-sized enterprises.
Under the simplified regime, taxpayers:
- Issue Invoices Without VAT: Businesses do not charge VAT on their invoices but are still required to file monthly VAT returns.
- Pay 7% of Transaction Amount: Instead of the usual VAT calculations, businesses must pay 7% of the amount received in respect of transactions that would typically be subject to VAT in the standard regime. They also pay 7% VAT on services acquired from non-resident entities.
- Deductions on Input VAT: The simplified VAT regime allows for a reduced input VAT deduction (7%).
Taxpayers in the simplified regime can switch to the standard VAT regime if they meet the following conditions:
- Maintain organized accounting according to Angolan PGC (Angolan GAAP).
- Have no outstanding tax or customs debts.
- Keep their registration updated in the General Register of Taxpayers system.
- Use certified billing software to issue invoices or equivalent documents.
- Submit VAT returns and accounting data electronically.
When switching to the standard VAT regime, businesses can deduct 90% of the VAT paid on goods purchased in the 12 months prior to the change, with approval from the Angola tax authorities.
Exemptions Under Angola VAT
The following supplies are exempt from VAT in Angola:
- Pharmaceutical products for therapeutic and prophylactic use.
- Educational services provided by recognized institutions.
- Health services performed by hospitals, clinics, and similar establishments.
- Transport of sick or injured individuals by authorized ambulance services.
- Medical equipment used by healthcare facilities.
- Wheelchairs, braille typewriters and printers, and items for the blind.
- Books, including digital versions.
- Sale and lease of real estate properties.
- Collective passenger transport services.
- Financial services like intermediation and leasing (excluding those with specific fees).
- Life and health insurance, as well as reinsurance.
- Petroleum products.
Imported goods intended as gifts for charitable causes or to assist with natural disaster relief (such as droughts, floods, or pandemics), provided the purpose is recognized by the General Tax Administration (AGT).
Zero-Rated VAT
Certain exports and international operations benefit from a zero VAT rate. These include:
- Exports of Goods: Goods exported outside Angola are subject to zero VAT.
- International Transport of Passengers: Transport services for passengers traveling internationally are zero-rated.
- Supplies for Vessels and Aircraft: Goods and services supplied to commercial vessels and aircraft are zero-rated to promote international transport activities.
The Captivation VAT Regime
Under the captivation regime:
- State and Oil Companies: 100% of VAT charged by suppliers must be captured by state-owned entities and oil-investing companies.
- Other Entities: Financial institutions, insurers, and telecom operators are required to captivate 50% of the VAT charged by suppliers.
This mechanism ensures that VAT is withheld at the point of transaction and is reported as output VAT in the VAT returns of the captor entity.
Exemptions to the Captivation Regime
Certain transactions are exempt from the captivation regime, including:
- Supermarket sales
- Hotel and restaurant services
- Transactions conducted by telecom operators, commercial banks, and insurers.
If the invoice is paid and the VAT is not captivated by the buyer, the responsibility to pay the VAT falls to the supplier.
Customs Duties in Angola
Angola imposes customs duties on imports at ad valorem rates ranging from 2% to 55%. For exports of goods not produced in Angola, the customs duty rate is 20% with an additional 0.5% customs fee.
Certain products such as food, medicine, medical equipment, and biosafety items are subject to a higher export duty of 70% unless exempted under specific conditions.
Excise Duties in Angola
Excise duty has been in effect in Angola since 1 October 2019, with the Excise Duties Code updated by Law 16/21 on 19 July 2021. This law remains in force today.
Excise duty applies to all production, imports, and public auction sales, with rates varying from 2% to 50%, depending on the product.
The Excise Duty Code covers the following products:
- Sugar and alcoholic beverages
- Tobacco and its derivatives
- Fireworks
- Jewellery and goldsmith articles
- Aircraft and pleasure craft
- Firearms
- Art objects, collages, and antiques
- Petroleum products
- Vehicles
- Plastic bags and straws
- Tires (as specified in Annex I)
The taxable amount subject to excise duty is:
- For domestically produced goods: The transactional value
- For imported goods: The customs value
- For petroleum products: The cost of production
Producers must assess excise duties when products are made available to customers and submit the data electronically by the last working day of each month.
Excise Duty Exemptions
Exemptions from excise duty include:
- Goods for education or health purposes
- Goods for collective passenger transport with international traffic
- Products sold on board international passenger transport
- Electric vehicles
A mandatory tax stamp is required for manufactured beverages, tobacco, and their substitutes, as detailed in Annex I of the Excise Duties Code.
Establishments producing beverages, tobacco, or petroleum products must have a certified counting and measuring system to electronically transmit production data to the Angolan General Tax Administration (AGT). This system must comply with AGT regulations.
This system ensures transparency and compliance with Angola’s excise duty laws.
Stamp Tax in Angola
Stamp tax applies to a variety of transactions, with different rates depending on the type of transaction. Examples include:
- On Receipts: A stamp tax of 1% is applicable to receipts unless exempt.
- Real Estate Transactions: The acquisition of property for commercial use incurs a 0.3% stamp tax, while residential property transactions incur a 0.1% rate.
- Insurance: Insurance premiums are generally subject to a stamp tax, ranging from 0.1% to 0.3%, depending on the nature of the policy.
Property Tax in Angola
Property tax in Angola applies to both urban and rural properties, including rental income. The tax is levied based on the property’s value and any rental income generated.
Property Tax Rates:
- For Leased Assets: Property tax on rental income is calculated at a 15% effective rate.
- For Unleased Assets: Property tax rates vary, with a rate of 0.1% for properties valued up to AOA 5 million, and 0.5% for properties over AOA 6 million.
Property Transfer Tax:
A property transfer tax of 2% applies to the transfer of immovable property.
Special Levy on Foreign Exchange Operations (CEOC)
The Special Levy on Foreign Exchange Operations (CEOC) applies to international transactions such as service agreements, capital operations, and consulting. Corporate entities are taxed at 10%, while individuals face a 2.5% rate on the value of the transferred funds.
Personal Income Tax (PIT)
Angola’s progressive PIT system taxes income from 0% to 25%, depending on the individual’s income level. Employers withhold this tax directly from employees’ wages.
Social Security Contributions
Social security contributions in Angola are mandatory. Employees contribute 3% of their gross income (or 8% if retired), while employers contribute 8%. These contributions fund family, pension, and unemployment protection.