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File photo / Minister of Finance Adriano Maleiane announced the measure
The Mozambican Cabinet has approved a decree that provides for the reimbursement of Value Added Tax (VAT) until the month following the payment, in order to eliminate delays. This measure should be enforced from 2018 onward.
Mozambican Minister of Economy and Finance Adriano Maleiane said in a press conference following the weekly session of the Council of Ministers that the decree harmonises and simplifies VAT collection and reimbursement mechanisms to expedite its payment .
“Now it is clearer and we think it will be very good for companies because we will not have late VAT, starting in 2018,” said Adriano Maleiane.
Taxpayers who are in regular status may apply for VAT refunds in the following month, he added.
The Tax Authority, he continued, will create the conditions to have a financial reserve capable of responding to the need for speed in VAT refund.
“This decree is very important, first because it harmonises all the procedures related to VAT, and then because it gives details of what is necessary to have the VAT refund,” said the Minister of Economy and Finance of Mozambique.
Mozambican companies have pointed to the delay in the reimbursement of VAT as one of the factors of decapitalisation of the country’s private sector.Source: Lusa