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  • Mozambique Indirect Taxes

    A. Value Added Tax/Sales Tax (National Government)

    1. Name of Tax, Levied in Terms of Which Act (Name, Number and Year)

    Value Added Tax (VAT) the VAT code was approved by Cabinet decree, under Act 51/98, of 29 September.

    2. Department Responsible for Administration

    The authority responsible for the administration of this tax is the National Tax and Auditing Directorate, through the Central VAT Services and the different Finance Departments related to the various tax areas.

    The General Customs Office (DGA) is responsible for the administration and levy of this tax on imported goods or on special customs regimes.

    3. Taxpayer

    VAT taxpayers are individuals and companies:

    a. who reside or have a stable business or representation on national territory and independently and frequently carry out, with or without profits, activities of a productive or commercial nature or services rendered, including extractive, agricultural, forestry, cattle-breeding and fishing activities;

    b. who do not carry out an activity, but are independently involved in any taxable operation provided it falls within the scope of direct taxation on revenue;

    c. who are non-resident and do not have a stable business or representation, although they do carry out a taxable operation on an independent basis, provided such an operation is associated with the execution of their business activities regardless of the location or time, besides this connection, such operation falls within the scope of direct taxation on revenue.

    d. who import goods under the customs legislation;

    e. who on an invoice or similar document wrongly mentioned Value Added Tax.

    4. Time When Tax is Levied

    In the case of the transfer of goods, VAT is payable at the time when the goods are placed at the disposal of the purchaser; in the case of services rendered, at the time of its execution; and in the case of imports, when the bill of lading is numbered, or if the imported goods are placed on auction and sold.

    Notwithstanding the above-mentioned paragraph, whenever an invoice or a similar document must be issued with the transfer of goods or the services rendered, taxes are levied:

    a. if the term indicated for the issue is complied, VAT is payable at the time of the issue of the invoice;

    b. if the term indicate for the issue is not following, then the tax is payable upon termination of the deadline;

    c. if the transfer of goods or services rendered result in full or partial payment, prior to the issue of an invoice or a similar document, VAT is payable at the time of payment, on the sum received.

    5. Included in Tax Base

    VAT is levied on the transfer of goods and services rendered on national territory, on onerous title, by a taxpayer acting as such, and on imported goods.

    The payment procedures are as follows:

    • payment is settled by the taxpayers, by submitting the monthly periodic statement on the payable taxes accompanied by the sum of tax to be paid, via any legally authorised form of payment;
    • when settlement is required upon the initiative of the services, the taxpayer is immediately notified to pay at the competent Revenue Office within 30 days of notification;
    • taxes levied on imported goods must be paid to the relevant customs authorities during customs' dispatch.

    6. Positive Rates

    Rate : the applicable rate is the one applicable at the time when the tax is payable, the current rate being 17%.

    7. List of Goods/Services at Zero Rate

    Please refer to the list attached to the Act.

    8. List of Goods/Services at Positive Rates Other Than Standard

    Idem

    9. List of Exemptions

    The VAT Act includes exemptions applicable to domestic operations, imports, exports, similar operations and international transport and special customs regimes.

    Please refer to article 9 of VAT Act.

    10. Tax Period

    The tax year coincides with the calendar year.

    11. Deferement Schemes/Special Schemes

    Not applicable

    12. Beneficiary of Revenue

    National Treasury, through the Ministry of Planning and Finance

    B. Excise Taxes Alcohol (National Government)

    1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)

    There is no excise tax on alcohol, although there is a Special Tax and Customs Regime applicable to denatured alcohol and alcoholic beverages and taxed under the Excise Duty on Specific Goods.

    Special Tax and Customs Regime on Alcohol as set out in the respective Act.

    2. Department Responsible for Administration

    General Customs Office

    3. Taxpayer

    All consumers of the product, payment is made by the manufacturing industries.

    4. Included in Tax Base

    5. Tax Rate (Tariff Heading, Description, Rate Per Litre or Per Litre of Absolute Alcohol)

    6. Rebates

    7. Beneficiary of Revenue

    National Treasury

    C. Excise Taxes Tobacco Products (National Government)

    1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)

    There is no excise tax on tobacco, although there is a Special Tax and Customs Regime applicable to rolled tobacco and taxed under the Excise Duty on Specific Goods.

    Special Tax and Customs Regime applicable to processed tobacco, as stipulated in the Excise Duty on Specific Goods Act.

    2. Department Responsible for Administration

    General Customs Office

    3. Taxpayer

    4. Included in Tax Base

    5. Tax Rate (Tariff Heading, Description, Rate Per Kilogramme, or Per 10 cigarettes/Cigars)

    6. Rebates

    7. Beneficiary of Revenue

    National Treasury

    D. Excise Taxes Fuel/Hydrocarbon Oils (National Government)

    1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)

    Excise Tax on Fuel (IEC)

    Excise tax on Fuel, Act 22/90 of 24 September

    2. Department Responsible for Administration

    National Tax and Auditing Directorate of the Ministry of Planning and Finances and the National Energy Directorate of the Ministry of Mineral Resources and Energy.

    3. Taxpayer

    The taxpayers are:

    a. the refineries or importers who industrially produce or sell fuel in any manner on Mozambican territory;

    b. individual importers, individuals or companies who bring fuel, via road or sea, onto national territory for their own or others use.

    4. Included in Tax Base

    All fuel produced or imported destined for consumption on Mozambican territory is subject to the excise tax on fuel.

    The term fuel comprises gases, liquid petrol (domestic or industrial), leaded or unleaded petrol, aviation fuel (AVGAS), jet fuel, illuminating paraffin, diesel, fuel and any other form of traded fuel.

    5. Tax Rate (Rate of Duty Per Litre, Total Tax Burden as a Percentage of Retail Price)

    Specific rate

    6. Rebates/Concessions/Special Schemes

    7. Beneficiary of Revenue

    National Treasury and the National Road and Bridges Fund

    E. Excise Taxes - Non Alcoholic Bevarages/Other (National Government)

    1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)

    Not applicable

    2. Department Responsible for Administration

    3. Taxpayer

    4. Included in Tax Base

    5. Tax Rate (Tariff Heading, Rate Per Litre, or Per Kilogramme, or Per Unit)

    6. Rebates

    7. Beneficiary of Revenue

    F. Excise Duty on Luxury Goods - Ad Valorem (National Government)

    1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)

    Excise Duty on Specific Goods (ICE), the Excise Duty on Specific Goods Act was approved by Cabinet, Act 52/98, of 29 September.

    2. Department Responsible for Administration

    The authority responsible for the administration of this tax is the National Tax and Auditing Directorate (DNIA) through the Finances Offices in the different tax areas.

    The General Customs Offices (DGA) is responsible for the administration, settlement and levy of this tax on imports or in the case of special customs regimes.

    DNIA and DGA are responsible for the monitoring of this tax within the scope of their powers.

    3. Taxpayer

    The taxpayers are all individuals or bodies who produce, purchase or offer products subject to Excise Duty on Specific Goods.

    Excise Duty on Specific Goods is levied on certain goods, produced or imported, as set out in the list attached to the respective Act.

    Excise Duty on Specific Goods is applicable to those products whose features are considered to be luxurious, superfluous, dangerous or harmful to human health.

    For example: luxury vehicle, leisure boats, alcoholic beverages, tobacco, firearms, beauty products, ornamental and decorative products, jewellery etc

    4. Included in Tax Base

    Excise Duty on Specific Goods is levied on certain goods, produced or imported, as set out in the table attached to the respective Act.

    Excise Duty on Specific Goods is applicable to those products whose features are considered to be luxurious, superfluous, dangerous or harmful to human health.

    For example: luxury vehicles, leisure boats, alcoholic beverages, tobacco, firearms, beauty products, ornamental and decorative products, jewellery etc.

    5. Tax Rate

    The rates are set out in the table attached to the respective Act.

    6. Special Methods (to deal with the specific needs of some industries)

    The following goods are subject to a special tax regime under the Excise Duty on Specific Goods:

    • non denatured ethyl alcohol;
    • beer and other alcoholic beverages;
    • processed tobacco;
    • luxury vehicles.

    7. Beneficiary of Revenue

    National Treasury, through the Ministry of Planning and Finances

    G. Excise Duty on Other Goods (National Government)

    1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)

    2. Department Responsible for Administration

    3. Taxpayer

    4. Included in Tax Base

    5. Tax Rate (specify ad valorem or specific)

    6. Special Methods (to deal with the specific needs of some industries)

    7. Beneficiary of Revenue

    H. Air Passenger Duty/ Departure Tax (National Government)

    1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)

    There is not a Government levied tax. There is a symbolic tax known as "Departure Tax" applicable at airports and levied by the airports management company to defray expenses related to the arrival and departure of passengers.

    2. Department Responsible for Administration

    National Airports Company

    3. Taxpayer

    Air passengers

    4. Included in Tax Base

    5. Tax Rate

    6. Exemptions

    7. Beneficiary of Revenue

    National Airports Company

    I. Financial Transaction Taxes/Stamp Duty (National Government)

    1. Name of Tax and Levied in Terms of Which Act (Name, Number and Year

    Stamp Duty

    2. Department Responsible for Administration

    National Tax and Auditing Directorate

    3. Taxpayer

    Any person wishing to stamp any document or contract are subject to the stamp duty as well as any registration or act by a Notary Public (Registrar)

    4. Included in Tax Base

    5. Tax Rate

    1/1000 for every registration act or document stamping

    6. Exemptions

    7. Beneficiary of Revenue

    National Treasury

    J. Payroll Taxes/Social Security Taxes (National Government)

    1. Name of Tax and Levied in Terms of Which Act (Name, Number and Year

    Social Security Contribution

    2. Department Responsible for Administration

    National Social Security Institute

    3. Taxpayer

    All employees

    4. Included in Tax Base

    This is not really a tax, but rather a contribution made towards unemployment or compensation as deemed necessary by circumstances.

    5. Tax Rate

    7% of the basic salary of an employee, of which the employee pays 3% and the employer pays 4%.

    6. Exemptions

    7. Beneficiary of Revenue

    The employees themselves (pensioners) when legal circumstances so indicate.

    K. Other Taxes (National Government)

    1. Name of Tax and Levied in Terms of Which Act (Name, Number and Year

    Vehicle Tax - Vehicle Tax, the regulation was approved under Act 19/2002 of 23 July

    2. Department Responsible for Administration

    National Tax and Auditing Directorate, Ministry of Planning and Finances.

    3. Taxpayer

    The taxpayers are the vehicle owners, both individuals and companies, public or private.

    4. Included in Tax Base

    Vehicle tax is levied on the use of registered vehicles in Mozambique, or if not registered, once 180 days have lapsed after entering Mozambique and are used under normal conditions.

    Vehicles subject to tax:

    a. Light and heavy motor vehicles with 25 years or less;

    b. Passenger motorcycles with or without cart with 15 years or less;

    c. Aircraft with engine for private use;

    d. Leisure boats with motor for private use.

    5. Tax Rate

    AD VALOREM as stipulated in the table attached to the specific Regulation and varies according to the type of vehicle, its age, model, cylinder capacity, power, fuel used or means of propulsion, weight capacity or number of passengers.

    6. Exemptions/Rebates/Deferments/Special Schemes

    Exemption from Vehicle taxes:

    a. The state or any state services, authorities or departments, even if personalised;

    b. Local municipalities and its associations and/or municpal federations;

    c. Foreign countries, when there is reciprocity;

    d. Personnel at diplomatic and consular missions, according to the respective Conventions;

    e. Foreign or international organisations, according to the agreements entered into by the Government of Mozambique.

    7. Beneficiary of Revenue

    National Treasury

    L. Other Taxes 2 (National Government)

    1. Name of Tax and Levied in Terms of Which Act (Name, Number and Year

    Transfer Duty (SISA) Duty paid on the Sale and Purchase or any other form of transfer of Fixed Property.

    2. Department Responsible for Administration

    National Tax and Auditing Directorate

    3. Taxpayer

    Any person purchasing fixed property

    4. Included in Tax Base

    All fixed property sold and bought

    5. Tax Rate

    7.5% on the metrical value of the fixed property

    6. Exemptions/Rebates/Deferments/Special Schemes

    The State and any other cases where exemption is applied

    7. Beneficiary of Revenue

    National Treasury