VAT

And, regarding the imported goods is VAT applicable to our supplier?

Yes, it is a normal process in which the importer submits the documents that will follow all required clearance  steps and procedures and in general, the goods will be subject to VAT and other  customs charges applicable upon import as per article 5 of the VAT Code.

Is VAT levied on staff feeding related expenses deductable?

In principle, VAT levied on food for the staff is not deductable under the terms of line d, paragraph 1 of article 20 of the VAT Code. However, on what regards to companies employing a considerable number of staff with its own canteen, VAT deduction should apply.

How should I procede in case of, by mistake, I fail to book-keep an invoice related to a specific month?

In these circumstances VAT should be deducted within 90-days period as from the date on the invoice or equivalent document.

Which elements an invoice or equivalent document should contain?

The following are the elements required for an invoice or equivalent document under the terms of article 27 of the VAT Code:                                                       

− It should be in Portuguese Language and in Meticais (n.º 5, art.106, Law n.º 2/2006  dated 22 March);                                                        

− It should contain a date (n.º 5, art. 27 of the VAT);

− Sequential Number printed by a typography authorized by the Ministry of Finance (n.º 5 and 7, art. 27 of the VAT Code) or processed by computer.                       

− Full details of the typography; its social designation, headquartes and NUIT as well as the License as per n.º 7, art. 27 of the VAT Code;                                                                                       

− Full details (Name, NUIT and domicile of the taxpayer), (line. a) n.º5, art. 27 of the VAT Code);                                                                            

− Quantity and usual designation of the goods/services rendered  (line. b) n.º 5, art. 27 of the VAT Code);                                                                              

− Separate indication of the  non transacted packages, (line. b) n.º 5, art. 27 of the VAT Code);

− Net tax price  and other elements included in the taxable amount (line c) paragraph 5, atricle 27 of the VAT Code;                                                      

− Fee and tax amount due, (line d), paragraph 5, article 27 of the VAT Code; and        

− Reasons for non taxation, (line d), paragraph 5, article 27 of the VAT Code.

Is there need to request permission to print invoices or other equivalent documents through computers?

Under the legislation in force, paragraph 9 of the dispatch dated 22nd December 2011 authorizing the procedures for printing invoices, the taxpayer should request to the Tax Office Director, permission to print invoices or equivalent documents and he should attach both the invoice template as well as the descriptive memory of the software to be used; then he should wait for the technical team to go and ascertain the its trustworthiness.

Should an NGO be VAT exempt on the local market purchases?

No. Single and corporate taxpayers are not tax exempted under VAT Code. But exempts the operations undertaken by those persons; therefore, non-profitable goods and services purchased by NGO´s will not be tax-free, thus assuming non-deductable VAT as a cost.

What are the requirements to be adopted by an individual without organized administrative structure to rent his house to a company?

When a house is rented to an individual without a well organized administrative structure, the following should be observed:

− Get a license from competent authorities in order to exercise the renting activities; then there should be a rent or lease contract (as the case may be)  selaed by the Tax Office;                         

− Contact the Customer Care Services or Tax Office in order to get the NUIT and then complete the  Declaration for the beginning of the Business;

− Then, they should request the printing of invoices or equivalent documents in an authorized typography in order to allow for the VAT to be deducted.

Should a company deduct VAT supported by taxpayers when travelling abroad?

Under the terms of line b, article 20 of the VAT Code VAT levied on those expenses should not be deducted. However, VAT deduction shall not be excluded for the accommodation and food expenses incurred by commercial travelers, on their own, but performing their professional duties.

Is there room for VAT to be levied on publicity services rendered to a client based outside national territory?

In this case VAT should be levied as the services mentioned (publicity and outdoors) shall be rendered in the national territory; i.e., it is more adequate to locate this operation within the national territory following the fiscal domicile criterion. Therefore, being this defined as an internal operation, it will enjoy the same treatment accorded to other national service providers for the same tax load, avoiding distortions deriving from an unfair competition among national and Foreign Service providers. However, in reading paragraph 8 of article 6 of the VAT Code, and in case of pure publicity services, VAT shall not apply.

In case of a client abroad requesting publicity services from a Mozambican company for internal consumption, is there room for VAT to be levied?

Not VAT shall apply. It is set for in paragraph 8 of article 6 of Law 32/2007 that reads “ the provision of services referred to in the previous paragraph shall not levied, even though the provider of such services has his headquarters, permanent establishment or domicile in the national territory while the beneficiary of such services is domiciled abroad”.

In VAT applicable in relation to a service provided to a foreign client with his headquarters abroad?

Yes, provided  his services are not listed in paragraph 7, article 6 of the VAT Code.