Mozambique is Set to Implement Tax on the Digital Economy, Kicks off November

Mozambique is set to implement a tax on the digital economy as part of efforts by the government at the centre to widen the tax net and boost tax revenue to shore up resources for the government to execute its core duties.

Although the tax will take full effect in the early part of next year, a preliminary test of the novel tax will be conducted in November which will be limited to control and taxation of online transactions, especially in the tourism sector.

Mozambique is Set to Implement Tax on the Digital Economy: More Information

As recently explained by the Office of the Deputy Ministry of Economy and Finance, the adjustment is coming on the heels of the significant global impact on the national tax system that has not captured digital transactions including e-commerce, domestic transactions, international transactions, and mobile wallet operations.

To ensure effective implementation, the Ministry of Economy and Finance has since established a unit for the Digital Economy Taxation Unit. This unit is now saddled with the responsibility of ensuring success with the proposed scheme.

Check out this tax update on Mozambique

A Peep into the Digital Economy

The digital economy has a lot to do with e-commerce, app stores, online advertising, online payment services, cloud computing, participative networked platforms and the likes.

Unlike businesses in the traditional economy, companies that are part of the digital economy are able to generate significant revenues in foreign countries without the need to put up big offices or have many employees there. This is what the concept of digital economy bothers upon.


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