Under the Cape Verde digital transformation program and with a view to promote an expedite and digital communication between the Tax Administration and taxpayers, a new regime was enacted on electronic invoicing and electronic issuance of relevant tax documents (Decree-Law No. 79/2020, of 12 November 2020).

This regime provides for the possibility of electronic issuance of invoices not only through software developed or acquired by the taxpayers, but also through public software provided by the Tax Administration.
 
The regime defines the rules relating to the electronic processing of documents, notably their issuance, conservation and filing, the requirements for the invoicing and accounting software systems, as well as auditing and ancillary obligations, under which new inspection prerogatives are granted to the Tax Administration.
 
The implementation will be done in a phased manner, starting with a pilot project, followed by voluntary adherence, until finally becoming mandatory.

There will be a transitional period, until becoming mandatory, during which several legal statutes related to invoicing procedures shall remain in force.
 
The new statute enters into force on 13 November 2020. However, its implementation and possible adherence to same is subject to publication of a Ministerial Order by the member of the Government responsible for the area of Finance.
 
It should also be noted that as a result of this new obligation, the 2021 State Budget Bill provides for the creation of incentives for the purchase of accounting and invoicing equipment and software as a result of the electronic invoice adherence process.

For more information on this Tax Alert please contact:
[email protected]