Mozambique: AT to start taxation of digital commerce

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Mozambique: AT to start taxation of digital commerce

9:28 CAT | 16 Aug 2023

File photo: Domingo

The Tax Authority (AT) will this semester roll out the pilot phase of the taxation of commercial transactions carried out through digital channels.

The measure is aimed at improving control of income generated in Mozambique and to create mechanisms to raise more revenue for state coffers, according to Amorim Ambasse, coordinator of AT’s Digital Economy Taxation Unit (UTED.

For this purpose, taxes will be charged on all sales of goods and services generating income from domestic electronic commerce.

At the same time, the AT intends to control and tax all transactions for the purchase and sale of services carried out by mobile banking (electronic banking) and the income generated by commissions from electronic money agents and institutions, including operations carried out using cryptocurrencies.

Ambasse said that this is a new paradigm for Mozambique, as for other countries in Africa and Europe. And, in the AT’s view, this taxation on consumption and income will not duplicate costs, given that digital commerce often involves several countries.

For now, the team trained to implement the project amounts to 41 people, including UTED managers, with a system analyst profile, auditors and accountants.

However, the legal framework still needs to be updated to accommodate the implementation of taxes on digital services, among others.

Source: MzNews