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Value added tax (VAT) was introduced in Madagascar in 1994. It is referred to locally as ‘Taxe sur la Valeur Ajoutée (TVA)’. It is a tax on turnover.

Rates and scope


The standard rate of VAT is 20%. The rate of 0% is applicable to export of goods and services.


VAT is applicable to all transactions related to goods and services performed in Madagascar by a legal entity, or by an individual business having a turnover equal to or more than 200 million Ariary.

VAT is generally chargeable on:

  • supplies of goods and services made in Madagascar by a taxpayer in the course of its business;

  • importation of goods and certain services into Madagascar; and

  • execution of buildings and civil works.

VAT registration

Tax Identification Number

All new businesses must obtain a Tax Identification Number at the time of incorporation. Such Tax Identification Number automatically covers VAT registration, if applicable.

Compulsory registration

Any company (legal entity) or individual business that makes supplies of goods and services and realising annual gross revenue of 200 million Ariary is generally subject to VAT.

A branch of a foreign company has to obtain a Tax Identification Number for the purpose of tax compliance obligations, including VAT obligations. A foreign company must register or open a branch if it wants to be established in Madagascar.

In the absence of further information, prices are supposed to be inclusive of VAT. Supplier invoices should mention clearly the amount of VAT in order to allow the recipient to deduct VAT input tax.


Calculation of output tax Output tax is calculated on:

Voluntary registration

Businesses realising a turnover below the annual statutory threshold given above are not subject to VAT. However, it is possible to register for VAT voluntarily even if the value of a business’s taxable supplies does not exceed the statutory threshold given above, after obtaining authorisation from the Ministry of Finances and provided that the accounting is certified by an auditor.

Group and branch registration

Each independent legal entity has to get its own Tax Identification Number and perform its own VAT compliances and obligations. VAT grouping is not permitted.

A branch of a company registered under Malagasy law has the same Tax Identification Number as the main company.

Any services realised/performed in Madagascar should be subject to VAT. Services are considered realised/performed in Madagascar if such services are used or enjoyed in Madagascar. A foreign services supplier who is not registered in Madagascar has to appoint a tax representative to collect and pay VAT on its behalf. In the absence of such a tax representative, the recipient is liable to account for VAT on behalf of the foreign supplier.

The taxpayer or the tax representative must have a bank account in Madagascar for VAT payment purposes.

Application for registration

There is no separate VAT registration procedure as distinct from general tax registration in Madagascar. In practice, registration is completed on incorporation.

A foreign business that does not have, or is not required to have a local branch has to appoint a fiscal representative in Madagascar who can be the recipient.


There is no separate VAT deregistration procedure as distinct from the business deregistration procedure. In practice, tax deregistration is completed with business winding up or liquidation.

Output tax

Advertising and prices

  • CIF value, including all costs and taxes other than VAT, in respect of importation;

  • taxable amount, including all costs and taxes other than VAT, for goods and services;

  • value of services and goods self- delivered by a taxpayer; and

  • amount of invoices or partial payment for civil works.

PricewaterhouseCoopers 85

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