VAT GST in Madagascar

General reference only. This Guide is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person’s facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in Madagascar.

Who this applies to

Use for taxable business supplies in Madagascar under CDI 06.01.02–05. Mandatory annual VAT-exclusive turnover threshold is the same ordinary-business threshold described in corporate/business regimes; an election for the real regime also creates TVA liability. A non-resident making taxable services in Madagascar is subject intermittently irrespective of turnover and of the customer’s own VAT status. Mixed exempt/taxable businesses are taxable only on taxable operations (06.01.05). CDI.

Rates, bands and thresholds

Transaction / condition	2026 rate	Official source
Ordinary taxable supply	20%	CDI 06.01.12
Export of goods or services qualifying as an export	0%	same
Luxury-rice imports/sales, tariff 1006.30 10, after LFR entry; earlier LFI rice exemption must be tested against its annex	5% after LFR entry	Loi 2026-004 amendment to 06.01.12
Import/sale of butane gas and its containers under tariff codes 2711.13 00 and 7311.00 00 respectively	10%	CDI 06.01.12

Do not confuse zero rating with exemption. CDI 06.01.06 lists exemptions including general/technical/professional tuition, health-profession services, medicines and specified products. The old phrase “unprocessed agricultural products” is not a blanket exemption: match the actual product against the statutory list and conditions. The July LFR changes the list: it repeals the kerosene exemption, replaces hybrid vehicles with electric vehicles, broadens the financial/banking lending-interest wording, adds meat sales and amends the annex, including luxury rice. Use the signed LFR amendments, not the unreconciled LFI annex. A July transition supply requires actual entry/publication evidence under article 22.

The base

Separate taxable, zero-rated, exempt and outside-scope transactions. For a sale, liability normally arises on delivery. For services and works it generally arises on receipt of advances, instalments or remuneration; a debit/invoicing option has notification requirements (06.01.10). The base includes other fees/taxes and excludes TVA itself; properly invoiced trade/cash discounts, damages and qualifying client disbursements are excluded under 06.01.11. CDI.

Compute output tax less eligible input tax. Ordinary purchase credit requires TVA separately shown on a compliant invoice from an assujetti, normal business necessity, taxable use and payment through a bank or mobile banking; import tax needs import evidence (06.01.17). Check excluded categories in 06.01.18 and supplier exigibility under 06.01.21. Mixed activities require allocation/prorata, not full credit. Do not credit employee or passenger-vehicle expenditure automatically.

An excess is a credit carried to later monthly periods for at most three years (06.01.23). For a business with both taxable and non-taxable operations, residual carryforward credit at year-end can be expensed. If assujetti status is withdrawn, residual year-end credit ineligible for refund under 06.01.24 must be expensed at year-end. Preserve those distinct permitted and mandatory treatments before carrying a balance into the next period. Refund classes include free-zone enterprises, professional exporters, approved financial lessors and VAT enterprises making qualifying investment; the old “export/free zones only” restriction is incomplete. Refund eligibility and allocation require 06.01.24 and implementing decisions. A request accompanies the monthly declaration; unrequested credit loses refund entitlement after the statutory three-month window following the due date. Keep requested credits out of the following carried-credit balance. CDI 06.01.17–24.

Deadlines and filing

Calculate and declare monthly, including nil-payment periods, by the 15th of the following month (CDI 06.01.16; CPF I-104). Declare commencement of taxable activity and relevant changes within ten days to the competent fiscal office (CPF I-105). Prepare the prescribed TVA declaration with taxable and non-taxable operations separately, sales/receipts schedule, purchase/import invoices, payment evidence, input exclusions, credit aging and refund annexes. Submit through the current channel prescribed by the managing office and retain proof of declaration and payment. CDI; CPF. The statutory form is verified; the current electronic portal form number, box labels and confirmation/payment-reference steps are not, so stop before submission until the actual form is obtained.

Penalties and interest

Use the turnover-specific default and late-payment rules in corporate/business penalties. A late IR/TVA declaration producing a tax credit attracts 40% of the declared credit after an unsuccessful reminder (CDI 20.01.52.3). Understatement is addressed by 20.01.54; invoice and input-credit breaches also have specific sanctions. The July LFR adds tax not paid to the Treasury to the 80% sanction in 20.01.54.2 C, with the tax additionally payable and judicial proceedings reserved. Identify the actual breach before applying a penalty. CDI.

Cross-border points

A service is taxable where materially performed and/or consumed in Madagascar, or where a non-localisable service/right/rented object is used or exploited there (06.01.09). The non-established supplier accredits a resident representative; absent that representative, the recipient liquidates and remits TVA by the 15th of the following month. Use a distinct intermittent declaration showing the service amount and collected TVA, even when the recipient has a normal monthly return. Input deductibility follows the general rules, not an automatic net-zero assumption (06.01.09 bis). CDI.

Two worked examples that recompute

Hypothetical ordinary taxable trader, output VAT exclusive and all stated inputs confirmed eligible under 06.01.17–21.

name: Domestic net monthly TVA
inputs:
  sales: 10000000
  eligible_input_tax: 1200000
steps:
  - output_tax: sales * 0.20
  - payable: max(0, output_tax - eligible_input_tax)
expected:
  output_tax: 2000000
  payable: 800000

A second hypothetical month includes zero-rated qualifying exports. This checks credit carryforward, not refund entitlement.

name: Output less input gives credit
inputs:
  domestic: 2000000
  exports: 8000000
  eligible_input_tax: 900000
steps:
  - output_tax: domestic * 0.20 + exports * 0
  - payable: max(0, output_tax - eligible_input_tax)
  - credit: max(0, eligible_input_tax - output_tax)
expected:
  payable: 0
  credit: 500000

Ask the client first

Get NIF and regime/election, annual turnover, activity/product tariff details, customer and consumption location, invoices, delivery and collection dates, debit-option notice, bank/mobile evidence, mixed-use costs, credit history, investment/export/free-zone status, foreign suppliers and accredited representatives.

Sources

Source and provisions actually read	Read on
DGI 2026 CDI, 06.01.01–24; 20.01.52–54	2026-11-01
DGI 2026 CPF, I-104–105	2026-11-01
Signed Loi 2026-004, LFR 2026, tax amendments and article 22 entry provision read	2026-11-01

Not yet confirmed: Exact radio/posted publication date activating the July LFR under article 22; do not resolve a transaction at that transition without the publication evidence. current electronic forms/boxes/payment-reference workflow, refund implementing decisions and case-specific agricultural tariff exemptions. Do not file a refund or claim an exemption from the headline summary alone.