- Guinea-Bissau transitioned from IGV to VAT to improve revenue collection and align with global standards.
- The IGV system faced challenges, including implementation inefficiencies and limited support for a dynamic business environment.
- Law No. 4/2022 established the legal framework for VAT.
- The Ministry of Finance issued an implementing decree in October 2024, detailing the terms and conditions for the VAT regime’s rollout.
- The VAT system officially commenced on January 1, 2025.
- The VAT applies to the local supply of taxable goods and services, as well as the importation of goods and services under specified conditions.
- Businesses with an annual turnover exceeding FCFA 40 million are mandated to register under the standard VAT system.
- Entities with annual turnovers between FCFA 10 million and FCFA 40 million qualify for a simplified VAT scheme.
- Those with turnovers below FCFA 10 million are exempt from VAT registration.
- The standard VAT rate is 19%.
- A reduced rate of 10% applies to specific imports and essential goods and services.
- A zero rate of 0% applies to exports.
- Certain goods and services are exempt from VAT to support social welfare and economic development.
Source: vatabout.com
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.
