Government to introduce vat on electronic money transactions

Maputo, 3 Dec (AIM) – The Mozambican government has approved the draft law on Value Added Tax (VAT), which is aimed at modernizing and simplifying procedures related to the electronic submission of invoices and equivalent documents.

After the revision is concluded, the document will be submitted to the country’s parliament, the Assembly of the Republic.

According to Inocêncio Impissa, government spokesperson and Minister of Public Administration, who was speaking to reporters on Tuesday after a meeting of the Council of Ministers (cabinet), the new law is aimed at eliminating the current distortions in how VAT is charged.

“The rapid growth of mobile wallets and the resurgence of commerce at the level of electronic platforms have been dominating a considerable part of domestic and international trade, especially in the acquisition of goods and services”, he said. The government has noted that traditional banking services are declining and losing ground to mobile wallets.

“Many electronic money transactions are taking place, but these transactions are not taxed”, said Impissa. “The volume of business generated by the mobile wallet services (M-PESA, E-MOLA and m-Kesh) on various digital platforms in this country is very high. There are many citizens, companies, and entities using digital wallets that should be taxed”, he said.
(AIM)
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