Legal update/Angola: Establishment of the Value Added Tax Regime for Natural Gas

Angola has introduced new Value Added Tax (VAT) Regime for natural gas, according to official legal database Legis-PALOP+TL.

The new VAT Regime in Angola is applicable  to prospecting, research, evaluation, development, production, treatment, storage, transportation and sale of gaseous hydrocarbons, including condensates and liquids extracted from natural gas.

As of May 22, 2024, the following transactions are exempt from Value Added Tax:

  • Imports of capital goods and raw materials, utensils and other products used in petroleum operations;

  • Acquisitions of capital goods on the domestic market intended exclusively and directly for the execution of the operations referred below;

Legal Update/Angola: Fines for breach of the Public Contracts Law

Also from May 22, 2024, Petroleum Investment Companies that carry out prospecting, research, evaluation, development, production, treatment, storage, transportation and sale of gaseous hydrocarbons, including condensates and liquids extracted from natural gas, as well as the construction, operation and maintenance of infrastructures and facilities related to these, in onshore or offshore areas, under the Service Contract with Risk of the New Gas Consortium Concession Area, must comply with the following:

  • Comply with the general rules applicable to the Petroleum Sector set out in the Value Added Tax Code (CIVA), republished by Law no. 14/23 of December 28;

  • Captivate all VAT contained in invoices or equivalent documents issued to them in relation to their purchases of goods and services;

  • To pay the captive VAT in full to the State coffers, including the tax on transactions that confer the right to deduction;

  • Create a single entity that is exclusively assigned to the activities of the New Gas Consortium Concession Area.

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