Guinea-Bissau: VAT implementation effective January 2025

Effective date of VAT implementation is January 1, 2025

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February 14, 2025

The government on December 3, 2024, via Circular No. 20/GDGCI/2024, declared January 1, 2025, as the effective date for value added tax (VAT) implementation.

Under the VAT regime, which was introduced by Law No. 4/2022 on January 1, 2023, taxpayers must declare VAT activities, request standardized invoices, and comply with VAT obligations to avoid penalties or sanctions.

  • VAT rates and exemptions: The standard rate of VAT is 19%, with reduced rates of 10% for certain essential goods and services, such as medicines and basic foodstuffs. In addition, exports of goods and services are exempt from VAT.
  • Simplified scheme for small businesses: The simplified VAT scheme is designed to lighten the tax obligations of small businesses, by allowing less frequent returns (quarterly) and simplified management of tax obligations.
     

For more information, contact a KPMG tax professional in Côte d’Ivoire:

Ndeye Diarra Diouf | dndeye@kpmg.ci

Aziz Gueye | azizgueye@kpmg.ci

Brahim Deye | bdeye@kpmg.ci

Arthur Tia | atia@kpmg.ci

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