Cape Verde VAT / GST

Value Added Tax (IVA)

Cape Verde operates a VAT (Imposto sobre o Valor Acrescentado, IVA) on the supply of goods and services and on imports. The standard rate is 15% with a reduced rate for certain utilities and a zero rate for specified imports.

• Standard VAT rate — 15% % (Codigo do IVA (VAT Code))
• Reduced VAT rate — 8% on electricity and water supplied to private consumers (and certain tourism services) % ((approx — confirm tourism scope)) (Codigo do IVA (VAT Code))
• Zero-rated supplies — Certain imports of essential goods, qualifying re-imports under customs exemption, and diplomatic/consular goods; exports are zero-rated % (Codigo do IVA (VAT Code))
• VAT registration threshold — Businesses outside the REMPE micro/small regime are within the normal VAT regime; the REMPE turnover ceiling is CVE 5,000,000 CVE ((approx — confirm)) (Codigo do IVA (VAT Code))
• Filing frequency — Monthly VAT return (declaracao periodica) under the normal regime ((approx — confirm)) (Codigo do IVA (VAT Code))
• VAT return and payment deadline — By the last day of the month following the tax period ((approx — confirm)) (Codigo do IVA (VAT Code))
• Reverse charge — Reverse charge applies to services acquired from non-resident suppliers; the Cape Verde recipient self-accounts for IVA ((approx — confirm)) (Codigo do IVA (VAT Code))
• VAT for micro/small companies — Companies under the REMPE single special tax (4%) do not charge or recover VAT separately (Regime Especial das Micro e Pequenas Empresas (REMPE))