- Introduction of VAT in Guinea-Bissau: Guinea-Bissau is set to implement a Value Added Tax (VAT) regime, following the passage of Law no. 4/2022 in early 2022, with the Ministry of Finance adopting an implementing Decree in October 2024.
- Implementation Timeline: The VAT regime is scheduled to start on January 1, 2025, marking a significant shift in the country’s taxation framework.
- Transition from IGV to VAT: The General Tax on Sales and Services (IGV), in place since the 1990s, will be replaced by VAT to modernize the tax system, address implementation deficiencies, and align with the uniform indirect tax model used by many West African nations.
- Phased Roll-Out: The VAT will be introduced gradually, initially covering local taxable supplies and imports, with specific turnover thresholds determining mandatory registration; businesses with annual turnover over FCFA 40 million must comply, while those with lower turnover may choose simplified or no registration.
- VAT Rates Established: The VAT framework includes a standard rate of 19%, a reduced rate of 10% for specific essential goods and services, and a zero rate for exports, indicating significant implications for local and foreign businesses, particularly in e-commerce and digital services.
Source 1stopvat
