Madagascar VAT Guide 2026

Overview — TVA in Madagascar

TVA in Madagascar is governed by the General Tax Code (Code Général des Impôts) and administered by the Direction Générale des Impôts (DGI). The tax applies to the supply of goods and services by registered persons in the course of business, and to imports. Madagascar operates a standard input-output VAT system where registered businesses can recover input VAT on purchases used for taxable supplies. Businesses with annual turnover exceeding MGA 20,000,000 (goods) or MGA 10,000,000 (services) must register for TVA. Voluntary registration is permitted for businesses below the threshold. The tax year is the calendar year, and TVA returns are filed monthly or quarterly.

VAT Rate Structure

Madagascar has a relatively simple VAT rate structure with two main rates:

• Standard rate (Normal) — 20% on most goods and services
• Zero rate (0%) — exports of goods and certain international services

Certain goods and services are exempt from TVA including basic foodstuffs (rice, bread, fresh produce), agricultural inputs, educational services, medical services, financial services (interest income, insurance), and residential rent. Exempt supplies do not allow input VAT recovery. The zero rate for exports allows exporters to reclaim input VAT on purchases related to export activities.

Registration Threshold

Businesses must register for TVA if their annual taxable turnover exceeds the following thresholds:

• Goods — MGA 20,000,000 annual turnover
• Services — MGA 10,000,000 annual turnover

Registration is done through DGI's tax portal. Once registered, the business must issue TVA invoices showing the tax amount separately. Businesses below the threshold (assujettis non-assujettis) do not charge TVA and cannot recover input VAT. Thresholds are reviewed periodically and may be adjusted for inflation.

VAT Filing & Payment

TVA-registered businesses must file returns monthly (by the 15th of the following month) or quarterly for smaller businesses. The TVA return includes output tax on sales, input tax recoverable on purchases, and the net amount payable or refundable. Payment is due at the time of filing. Late filing attracts a penalty of 10% of the tax due plus interest at 1.5% per month on unpaid tax. DGI conducts regular TVA audits and may perform unannounced inspections of business premises to verify compliance. Since 2023, Madagascar has been implementing electronic invoicing (e-invoicing) for larger taxpayers.

FAQs

Do I need to charge TVA if my turnover is below the threshold?

No, registration is only compulsory if annual turnover meets or exceeds the threshold. Businesses below the threshold may voluntarily register. Unregistered businesses must not charge TVA on their invoices.

Can I recover input TVA?

Yes, TVA-registered businesses can claim input TVA on purchases used for taxable supplies. Input TVA is netted against output TVA. If input exceeds output, a refund may be claimed subject to DGI verification.

What is the penalty for late TVA filing?

Late filing attracts a penalty of 10% of the tax due plus 1.5% interest per month on unpaid amounts. Repeated non-compliance may result in administrative sanctions including suspension of the tax registration.

Disclaimer

This guide provides general information about Malagasy VAT for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Malagasy tax advisor or the Direction Générale des Impôts for advice specific to your situation. InvestmentKit does not provide tax advice.