SAF-T: Enhancing Tax Compliance and Streamlining Reporting Processes in Angola
In July 2019, Angola introduced the Standard Audit File for Tax (SAF-T) as part of its implementation of the Value Added Tax (VAT) regime and the new Legal Regime of Invoices and Equivalent Documents. The primary objective of SAF-T in Angola is to facilitate a more efficient and effective exchange of transactional data between taxpayers and the Angolan General Tax Administration (AGT).
Under the new legal regime, taxpayers with an annual turnover exceeding $250,000 are required to utilize validated billing systems. These systems are built on four pillars:
1. Fulfilling applicable rules on physical and electronic documents.
2. Application controls that identify subsequent changes, ensure user authentication, and prevent unexpected data manipulation of relevant tax data.
3. Generating a unique code (Hash) for each document, enabling the identification of unexpected changes in the document’s data.
4. Generating the SAF-T (AO) file.
The SAF-T (AO) file is a standardized XML format file that must be exported from accounting, billing, and logistic systems for a specific fiscal period. This file can be either partial or a complete annual file for a maximum of one fiscal year. Taxpayers are required to submit the SAF-T (AO) files related to billing, accounting, and inventory elements to the AGT for the previous month’s operations by the 20th of the following month. This communication can be done through various channels, including uploading the file on the AGT web portal or using web services.
Initially, the Legal Regime of the Electronic Communication of the Accounting and Billing Elements was mandatory for Major Taxpayers and voluntary for other taxpayers with a turnover or imports higher than 50,000,000 Kz during 2019. However, starting from the year 2020, the obligation was extended to all taxpayers with turnover or imports higher than 50,000,000 Kz.
The implementation of SAF-T in Angola is considered a significant milestone in the country’s tax system as it aims to standardize accounting and billing information, simplifying interactions between taxpayers and the AGT. However, its introduction may also pose challenges for taxpayers, such as validating billing systems, ensuring compliance with the required standards, and addressing technical and functional requirements for data processing.
The introduction of SAF-T in Angola is expected to enhance tax compliance and streamline tax reporting processes for businesses operating in the country. It is crucial for taxpayers to comply with the SAF-T requirements and seek professional assistance if needed to ensure a smooth transition and adherence to the new regulations.
In conclusion, SAF-T in Angola is a vital tool in improving tax compliance and simplifying tax reporting for businesses. The implementation of this system signifies the country’s commitment to modernize its tax administration and ensure transparency in financial transactions. While challenges may arise during the transition, the benefits of SAF-T are expected to outweigh the initial hurdles, ultimately leading to a more efficient and effective tax system in Angola.
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