Law No. 13/2016, of 30 December 2016, was recently enacted, introducing amendments to the VAT Code (Law No. 32/2007, of 30 December 2007). Although the Official Gazette is dated 30 December 2016, such Gazette was only disclosed to the public during this week. The new law entered into force on 1 January 2017.
The main amendments are:
- Extension of the definition of territory, which now includes the areas where Mozambique has sovereign rights with regard to the prospecting, exploration and production of natural resources, of its seabed, subsoil and waters that are adjoining the seabed and the subsoil;
- Services rendered through electronic means by non-resident entities to resident VAT taxpayers in Mozambique are now subject to VAT. Among these services are the remote supply and maintenance of program and equipment, as well as the supply of music, movies, games, including games of chance and gambling games;
- New exemption rules for the supply of goods and provision of services (notably in the Health and Agricultural Sectors);
- Extension of the situations in which the reduction of the taxable base is applicable to the supply of water, agriculture hydraulics and dredging;
- New rules regarding ancillary obligations and refund of tax credits;
- Elimination of the VAT exemption on the acquisition of drilling, exploration and construction services in connection with mining and petroleum operations, during the prospecting and exploration phase.
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