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Mozambique VAT Guide 2026

Mozambique's Value Added Tax (Imposto sobre o Valor Acrescentado — IVA) applies at a standard rate of 16% on most goods and services. A reduced rate of 5% applies to certain basic goods including essential foodstuffs, agricultural inputs, and medicines. Exports are zero-rated (0%). The registration threshold is MZN 750,000 in annual turnover. The tax is administered by the Autoridade Tributária de Moçambique (ATM).

Overview — IVA in Mozambique

IVA is governed by the Código do Imposto sobre o Valor Acrescentado and applies to the supply of goods and services by registered persons in the course of business, and to imports. Mozambique operates a standard input-output VAT system allowing registered businesses to recover input VAT on purchases used for taxable supplies. Businesses with annual turnover exceeding MZN 750,000 must register for IVA. Voluntary registration is permitted for businesses below the threshold. VAT returns are filed monthly or quarterly depending on turnover.

VAT Rate Structure

  • Standard rate — 16% on most goods and services
  • Reduced rate — 5% on basic foodstuffs, agricultural inputs, medicines, medical equipment, and certain essential goods
  • Zero rate — 0% on exports, international transport, and related services
  • Exempt supplies — financial services, insurance, education, healthcare, residential rent, and real estate transactions

Exempt supplies do not carry input VAT recovery, meaning VAT incurred on inputs for exempt activities is a cost to the business.

Registration Threshold & Compliance

Businesses with annual turnover of MZN 750,000 or more must register for IVA with ATM. Registration is done through ATM's online portal. Once registered, the business issues IVA invoices showing the tax component separately. VAT-registered businesses must file returns monthly (by the 20th of the following month) for larger taxpayers, or quarterly for smaller businesses. Late filing attracts penalties and interest. ATM conducts regular audits and may perform unannounced inspections.

Input VAT Recovery

Registered businesses can claim input VAT on purchases used for taxable supplies. Input VAT is netted against output VAT in the periodic return. Where input VAT exceeds output VAT in a period, the excess may be carried forward or refunded under certain conditions. Certain expenses have restricted input VAT recovery including entertainment, passenger vehicles, and accommodation. Input VAT on capital goods may be recovered over multiple periods.

FAQs

Do I need to charge IVA if my turnover is below MZN 750,000?

No, registration is only compulsory if annual turnover meets or exceeds MZN 750,000. Businesses below the threshold may voluntarily register. Unregistered businesses must not charge IVA on their invoices.

Can I recover input VAT on imports?

Yes, VAT paid on imports can be recovered as input VAT provided the imported goods are used for taxable supplies. The VAT is paid at customs and claimed in the periodic IVA return.

What is the penalty for non-compliance?

Failure to register, late filing, or non-payment of IVA attracts penalties ranging from MZN 10,000 to MZN 100,000 plus interest at 1% per month on overdue tax.

Disclaimer

This guide provides general information about Mozambican VAT for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Mozambican tax advisor or the Autoridade Tributária de Moçambique for advice specific to your situation. InvestmentKit does not provide tax advice.