Mozambique: Fines for those who fail to issue invoices mustn’t “scare the market” – Business Association

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Mozambique: Fines for those who fail to issue invoices mustn’t “scare the market” – Business Association

2:06 CAT | 26 Jan 2018

File photo / Agostinho Vuma

Mozambique’s Business Confederation (CTA) wants the imposition of fines on commercial establishments which fail to issue an invoice to be implemented without “scaring the market”, the president of the organisation has told Lusa.

“It is necessary that this new measure continues to be guided by dialogue, so as not to scare the market and agitate an economy that needs a vibrant business sector,” Agostinho Vuma said.

The Mozambican Tax Authority (TA) announced on Monday that, from February 1st, it would fine establishments that did not issue invoices.

Vuma said that the AT decision was legitimate, but must be implemented in collaboration with economic agents, as the business sector was the state’s largest taxpayer.

“The amount collected last year was the product of dialogue, so we want this year’s campaign to be carried out in a similarly positive manner,” he said.

Vuma believes that a dialogue-based campaign would make the Mozambican business community “aware of taxation”, culminating in compliance without threatening the more vulnerable sectors of the economy.

“The measure must be kept in place until our awareness of taxation leads us to a voluntary, honest stance,” he concluded.

The reinforcement of supervision comes after the AT noted that the percentage of commercial establishments issuing invoices was very small.

Data from the institution indicates that, out of a total of 4,000 taxpayers visited, only 700 were complying fully with the law.

In addition to commercial establishments, the new measure will also fine customers who ask not to be billed for transactions, as well as those who do not keep the documents for the length of time established by law.

Fines for establishments that do not issue receipts will vary between 5,000 meticais (EUR 68.00) and 70,000 meticais (EUR 956.00). Fines for customers range from 2.000 meticais (EUR 27.00) to30,000 meticais (EUR 409.00).

Source: Lusa