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Mozambique

Secondhand goods

Secondhand goods are subject to VAT. The tax is applicable to the difference between the sale price and the purchase price. The invoices issued by the taxpayers engaged in selling secondhand goods must contain the wording ‘VAT – secondhand goods’. Special accounting is required to evidence the calculation of VAT.

Exports of secondhand goods are, in most cases, zero-rated.

Retailers and service providers scheme

Retailers and service providers may issue invoices with prices that do not disclose the amount of VAT charged.

Travel agencies and organisers of tourism circuits

Where tour operators act in their own name, VAT is chargeable on the gross margin only. The taxable amount is calculated as:

(sales with VAT - purchases with VAT) x 100 117

Invoices issued for these operations should not disclose the VAT amount and should include the wording ‘VAT included’. Even if the VAT is shown separately on the invoice it cannot be deducted. These operations must be accounted for in a separate record (of a special model) showing the calculation of VAT.

Transfer of a business

Transfer of a whole business or independent part thereof is excluded from taxability, provided the recipient is or will become a taxable person. All goods not found in the place where the taxable person runs his business,

110

PricewaterhouseCoopers

forming part of his inventories and those consumed in excessive quantities, will be presumed to have been transferred or sold.

Other indirect taxes

Stamp duty

Stamp duty is assessed on all documents, contracts, books, papers and deeds designated in the schedule attached to the code. Transactions that are subject to VAT and not exempt are not subject to stamp duty.

Import duty

Import duties are levied on imports of goods. The taxes vary according to the Customs Tariff Schedule.

Specific consumption tax

Some of the amounts and rates indicated in the stamp duties schedule are as follows:

  • shares, bonds and any instrument representative of share capital –

    • 0.4

      %;

sale and purchase, exchange and transfer of immovable property – 0.2%;

lease and sublease of immovable property – 2%;

mortgage and pledge – 0.3%; notarial deeds – MZM250,00;

powers of attorney with any other power – MZM100,00;

loans (credit for a term of five years or longer) – 0.5%;

legal, judicial, fiscal and customs proceedings (per page) – MZM1,000; and

warranty insurance – 3%.

The following entities are responsible for assessing and paying over stamp duty:

notaries, civil, commercial and real estate registrars and other public entities;

entities that grant credit or guarantees or creditors of interest, premiums, commissions and other forms of consideration;

resident credit institutions, finance companies or other similar entities that have discounted credit instruments, intermediated in credit operations;

This tax is levied on purchases of certain merchandise manufactured in Mozambique or imported. The tax rates are listed in a table and range from 20% to 75%. Kindly note that this code will be amended in the near future.

Property transfer tax

Property transfer tax (SISA) is charged on the onerous transmission of property rights or other minor rights over immovable property (e.g. sale and purchase, accord and satisfaction, constitution of servitudes, etc.) considered as urban tenements located in the Mozambican territory. Urban tenements is any building on the land, with the grounds that serve it, where the source of income depends mainly on the existing structures and not on the land itself.

The obligation to pay the property transfer tax is generated at the moment that the onerous transmission of a property right or a minor right as referred to above is considered transmitted (including as referred above, the signature of promise of sale agreements).

The current rate of property transfer tax is 2% of the transmission value.

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