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Tax machines change Mozambican tax system

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With its pilot phase coming to an end, the Mozambican tax administration is about to implement an electronic billing system through a system for tax machines management, that shall modernize tax collection and fight evasion.

The trial phase, which is taking place in the Province of Maputo, runs until the end of March. In this period, the implementation of the tax machines in Mozambique shall be tested. This tax collection model uses technology to improve the management of taxpayers both of Value Added Tax (VAT) and  Simplified Tax for Small Taxpayers (ISPC). Once the trial phase ends in the capital city, the system shall be extended to other provinces. The Tax Authority aims to collect around 265,6 million meticais through this new model in 2021 alone.

The conditions and procedures related to the mandatory application of tax machines to taxable persons when carrying out transactions of goods and services, are regulated by the Regulation of Tax Machines, aproved by Decree n.º 92/2014, from December 31. 

The Regulation shall apply to:

1. All taxpayers exempted from the obligation to issue invoices, but with the obligation to issue sales receipts, according to VAT Regulation;
2. All ISPC taxpayers, whose annual sales volume, from the previous year or estimated by Mozambique Revenue Authority, is no less than 1,200,000.00 MT.

What are tax machines?

According to the Regulation of Tax Machines, the following equipment is considered a tax machine: the fiscal cash register and the fiscal printer. The fiscal printer is a printer connected to an IT program certified by the Tax Authority, which issues tax documents. The fiscal cash register is also considered a tax machine when properly connected to the fiscal printer or other compatible models.

These equipments are provided for in the legal framework of the tax machines, however the Tax Administration may, at the express request of the vendor, authorize the use of other models of tax machines, as the result of technological developments.

IT system for tax machines management

The IT system for tax machines management is a computerized system duly certified by the Tax Administration and shall be used by taxable persons or companies in the electronic issue of invoices through tax machines. This means that only the invoicing systems authorized by the Tax Administation can be used to issue invoices from the moment Decree n.º 92/2014, from December 31, enters into force.

How to know if an IT program is authorized by the TA?

Software developers will have to send their IT programs for analysis by Tax Authority experts, who will assess whether the systems fulfill the rules of electronic issuance of invoices established by law. Should the IT programs comply with the provisions of the TA in fiscal matters, these will be authorized and given a reference number that must be registered in the software and certifies the validation by the TA. Only vendors that get such validation will be considered vendors authorized by the TA.

Once the Decree enters into force, it is expected that inspectors verify whether the companies comply with the law. In order to guarantee that you are working in full compliance with the law, you have to:

  1. Buy the tax machine from an authorized vendor or distributor; 
  2. Guarantee that the machine is handed over with its own inspection bulletin at the time of purchase; 
  3. Guarantee that the vendor carries out regular maintenance/update of the tax machines; 
  4. Issue tax receipts for sales carried out or services provided; 
  5. Submit the monthly sales report from the tax machine to the tax administration;
  6. Only use invoicing equipment that is compatible with the tax machines described in the Regulation of Tax Machines.

PRIMAVERA solutions in authorization process at TA

The software provider PRIMAVERA has been in the Mozambican market for approximately 20 years, supporting the management of thousands of companies. PRIMAVERA has been alongside the TA from the outset of this highly important development phase of the national tax system. For the pilot project, it developed a software version for testing the usage by some clients, sharing its international experience in digitalizing fiscal reporting processes with the Tax Authority.

Aganst this background of development, PRIMAVERA is in a position to guarantee constant full and timely compliance with all legal and fiscal requirements to its clients. Therefore, if you do not have an electronic invoicing system yet, this is the right moment to learn about PRIMAVERA invoicing solutions, which will secure tranquility and security in complying with fiscal obligations, while making business management easier.

Pedro Montez

TAX Technology Manager at Primavera BSS