Time of supply
The enforceability of VAT is determined as follows:
sales and goods delivered, including self-consumed goods – VAT can be demanded by the Equatorial Guinean state at the time of delivery of the goods, merchandise and self- consumed goods and merchandise;
services – VAT can be demanded at the time of recovery of the payment of services;
import – VAT can be demanded at the time of registry of the declaration of consumption of the said goods; and
real estate operations – VAT can be demanded on the date of transfer.
Value of supply
The value of supply rules are as follows:
delivery of goods – all amounts or securities and all benefits, goods or services received or pending receipt in counterpart of the delivery;
imports – customs value, including all rights and duties paid upon entry, except for VAT;
services – all amounts and benefits received and if applicable, the value of goods that are consumable in the execution of the services;
exchanges – value of the products received in exchange for the goods provided, plus the amount of compensation received;
real estate projects – amount of the operation, memoranda or invoices; and
self-consumed goods – purchase price without VAT of the goods purchased or used but not transformed and the cost of goods extracted, produced or transformed.
Returns and payment of VAT
All taxpayers are required to file, before the 15th of each month, monthly returns of their transactions made during the preceding month, and make immediate payments to the Equatorial Guinea revenue authorities. Any taxpayer who has not performed a transaction during the said period must file a zero return.
Interest and penalties
The interest and penalty range depends on whether the administrative correction procedure is contradictory or unilateral.
Both contradictory and unilateral correction procedures can be followed by a tax agent when noting any shortfall, inaccuracy, omission or concealment in the elements used as the basis of the tax calculation:
contradictory procedure – in addition to the 10% interest for being in arrears, the fine will be 50% of the fees involved, which may be increased up to 100% if the taxpayer fails to show good faith;
unilateral procedure – in addition to the 10% interest, the fine will be 100% of the fees involved.
No refund is allowed according to the Tax Code. Nonetheless, when the amount of VAT deductible for one month exceeds that of VAT payable, the surplus constitutes a tax credit attributable to the VAT payable for the following period.
The taxpayer can appeal the decision to the same authority that took the decision or the higher authority.
The case could also be submitted to Tax Panels (‘Jurados Tributarios’). Tax Panels are the governing bodies which must resolve controversies on factual matters that may be brought between the Tax Administration and taxpayers.
Every taxpayer is required to issue and deliver invoices for goods delivered or services provided to its clients, as well as down payments received for these operations. Each invoice must reflect:
serialised invoice number and chronological date;
name, address and Taxpayer Number of the company;
prices, with the respective VAT charges listed separately; and
name, address and Taxpayer Number of taxpayer.
Credit notes and debit notes
Credit notes and debit notes are not ruled under the tax legislation but result from accounting practice. They are tolerated by the Tax Administration and must meet the same conditions that apply for an invoice.
Taxpayers are required to keep the following accounting books:
a registry book of all invoices issued, separated into those belonging to operations that are subject to VAT, exempt, not subject to VAT and self-consumption;
a registry book of invoices received;
a registry book of investment goods; and
a book with a current account of clients and suppliers.