Value Added Tax (VAT) in Guinea-Bissau

Value Added Tax (VAT) is a key component of Guinea-Bissau's tax system. Introduced to broaden the tax base and align with regional standards, VAT applies to most goods and services supplied in Guinea-Bissau.

VAT Rate

The standard VAT rate in Guinea-Bissau is 15%. There is no reduced rate or higher rate currently in effect.

Registration

Mandatory Registration

Businesses must register for VAT if:

• Annual taxable turnover exceeds 10,000,000 XOF
• They import goods into Guinea-Bissau (registration at customs)

Voluntary Registration

Businesses with turnover below the threshold may voluntarily register for VAT. This may be beneficial if:

• The business makes zero-rated or exempt supplies
• The business has significant input VAT to recover
• The business deals mainly with VAT-registered customers

Taxable Supplies

VAT applies to the following:

• Supply of goods and services in Guinea-Bissau in the course of business
• Importation of goods into Guinea-Bissau
• Supply of certain digital services by foreign providers

Exempt Supplies

The following are exempt from VAT:

• Basic foodstuffs (bread, milk, rice, cooking oil, sugar)
• Medical services and pharmaceutical products
• Educational services
• Financial services (banking, insurance, lending)
• Residential property sales (new commercial properties are taxable)
• Public transport services
• Postal services
• Export of goods (zero-rated)

Input VAT Recovery

Registered businesses can recover input VAT on purchases directly related to their taxable activities. Input VAT on the following is generally recoverable:

• Inventory and raw materials
• Capital equipment and machinery
• Operating expenses (rent, utilities, professional fees)
• Import duties and customs VAT

Input VAT on certain expenses is non-recoverable:

• Entertainment and hospitality expenses
• Passenger vehicles (unless used exclusively for business)
• Goods and services used for exempt supplies
• Personal expenses

VAT Filing and Payment

• Filing Frequency: Monthly
• Due Date: 15th day of the following month
• Method: Online filing through the tax portal
• Payment: Net VAT (output minus input) payable by the due date

Penalties

• Late registration: 200,000 XOF fine
• Late filing: 50,000 XOF per month
• Late payment: 1% interest per month
• Incorrect return: 25% of underpaid VAT
• Fraud: 100% of VAT evaded

Special Regimes

Import VAT

VAT on imports is collected at customs at the time of importation. The taxable value includes the customs value plus customs duties and other import taxes. Import VAT is recoverable as input VAT by registered businesses.

Digital Services

Foreign providers of digital services (streaming, software, online courses) to non-business consumers in Guinea-Bissau are required to register for VAT and charge 15% VAT. A simplified registration regime applies.