Value Added Tax (VAT)

Equatorial Guinea

Value Added Tax (VAT)

 Who and what is liable?

 All operations performed in Equatorial Guinea are subject to VAT unless they are included in the list of exemptions provided by the Equatorial Guinea Tax Code or a specific tax regime.

  • A service is considered as provided in Equatorial Guinea when the service is used or exploited in Equatorial Guinea
  • Related activities are:
  • Goods sold or assigned for valuable consideration.
  • Services provided.
  • Self-consumed goods and services.
  • Imports.
  • Other operations carried on by individuals or legal entities in their sphere of business,professional, and individual activities, including extraction activities.
  • Oil and gas sector/activities are not subject to VAT
  • Some exemptions exist, mainly related to specific sectors, education, agriculture, vital needs, investment and country development needs etc….;

Rates

  • The standard rate: 15%.
  • A reduced rate of 6% is applicable to a limited list of basic consumables and books.
  • A rate of 0% is applicable to a specific list of products and equipment provided in the Tax Code (e.g. certain medical products, some equipment for construction).

Deductions

  • Resident VAT payers must be registered.
  • Nonresident VAT payers must appoint a solvent resident representative to be jointly responsible for the payment of VAT and the discharge of other VAT obligations.

Declaration and Payment

  • Vendors are required to file monthly VAT returns within 15 days of the end of the month.
  • Variance between Output VAT and Input VAT is monthly declared latest on the 15th of the following month, and paid to public treasury, with the filing of the VAT return
  • In case of no VAT taxable activity during a month, a “NIL” Declaration should be done
  • Credit VAT is not refundable or may be compensated with others taxes with some conditions

Main obligations

  • Accounting Bookkeeping
  • Registration to Tax office
  • Invoice must provide all administrative, factual and fiscal information about oneself and the client.

Last Update: November 27th, 2023

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