Mozambique’s Tax Authority (AT) is taking decisive steps to introduce taxation on internet-based businesses, a growing sector both globally and nationally. The initiative aims to ensure that companies operating in e-commerce, an increasingly relevant segment, contribute adequately to state revenue.
According to Notícias, the AT has already identified 12 business segments and more than 300 companies, including national and international ones, as potential e-commerce taxpayers.
The director of the Digital Economy Taxation Unit at the General Tax Directorate, Amorin Ambasse, explained that many businesses are still not being properly invoiced, which puts the country in a situation comparable to a ‘tax haven’ for some companies.
‘Legal reform is necessary to make it clear which services and taxpayers are subject to paying taxes,’ Ambasse explained at a seminar on the sector, held in partnership with the Mozambique Chamber of Commerce (CCM).
In the same context, he emphasised that, despite the need for new legislation, there are already opportunities to ensure better communication and publicity about how companies resident in Mozambique can effectively contribute their taxes in this trade segment.
‘Legal reform is necessary to make it clear which services and taxpayers are subject to paying taxes’
However, there are challenges related to the technological infrastructure needed to monitor the volume of electronic transactions and identify which ones should be taxed. ‘The development of the concept on how the system will work is already at an advanced stage, taking into account the segments identified,’ he added.
For Ambasse, the implementation of this new tax mechanism should result in a significant increase in revenue collection levels. However, the immediate financial impacts cannot yet be estimated, as they depend on the speed of the ongoing legal adjustment and parallel studies.
During the seminar, CCM also expressed an interest in deepening the support mechanisms for the state, especially in bridging the gap between companies and the tax administration, with the aim of facilitating the fulfilment of obligations, including the issuing of discharge certificates.
