- Guinea-Bissau transitioned to a VAT system on January 1, 2025
- The move aims to enhance tax revenue collection, promote tax justice, and ensure legal compliance
- Previous system was a General Sales Tax with a flat rate of 19%
- New VAT system has standard, reduced, and zero rates, with a simplified regime for small businesses
- Businesses with taxable supplies exceeding FCFA 10 million must register for VAT
- Implementation faced postponements but is now in effect
- Businesses should register for VAT, update accounting systems, and train staff for the transition
- The change aims to create a fairer and more effective taxation environment and modernize the economy
Source: innovatetax.com
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Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
