IVA and IUR - Businesses

Althought the information below was posted pre May 2009, there is still some relevant information that a number of people will find helpful. These days (2019) those that need to pay taxes in Cape Verde can do so by setting up an account on the PORTON DI NOS ILHAS website. The website is available in English and Portuguese.

The taxes you pay will depend on how you have been set up as self-employed or the type of business you run. Your Cape Verde accountant can advise you about this.

Pre-2009 : A Finanza office opened in Santa Maria, Espargos (Finanza). There are different systems for paying vat, but you will need to make your own enquiries with an Accountant or a Lawyer.

These are the experiences of a few people who are working on Sal Island:

MOD-110

If you want to set yourself up to work as self employed, you need to register with the Finance Office in Espargos. You will be given a form MODELO-110. As soon as you receive this you are then required to pay IVA and IUR. MOD-110 has to be renewed annually, on or before the date it runs out. When you renew it, you have to pay another 30% IUR.

IUR :(Means - Imposto Sobre Rendimentos).

You need to go to the Finance Office in Espargos and they will fill in a MOD.GPO13 form (IDENTIFICACAO DA ENTIDADE RESPONSAVEL PELA COBRANCA,which after completed by someone at the Finance Office, you can either take it to any bank and pay what you owe or you can pay at the Finance Office by cheque or card (they won't accept cash at the Finance Office). Apparently this has to be paid in split payments i.e. 70% in January and 30% in July.

Even if you don't declare any earnings for the previous Financial year (runs Jan - Dec) you will still have to pay IUR for previous year. i.e. Non earnings declared Jan 06-Dec 06 you visit the Finance Office in Espargos in Jan 07 to pay IUR for the previous year.

If you are an Employee :

You only need to pay IUR. The Finance Office will use 'Tabela de Retencao Mensal (a que se refere o artigo 5?)' to calculate how much IUR you need to pay, based on your earnings.

IVA :(IMPOSTO SOBRE O VALOR ACRESENTADO)- DECLARACAO PERIODICA - DO REGIME SIMPLIFICADO : MODELO - 107:

This form has to be completed every 3 month period (see dates below).

5% of your earnings has to be paid every 3 months at the Finance Office in Espargos:

1st quarter - 30th April

2nd quarter - 31st July

3rd quarter - 31st October

4th quarter - 31st January .....

Take your invoice books with you to the Finance Office with the completed form Modelo -107. They will use your books to varify how much IVA you need to pay them.

Invoices and Finance Record books :

You can take your MODEL-110 form or similar form to the Stationers next to Photo Viera Shop in Espargos and order and pay for (in advance) any books, invoice pads you require for your business, it may take a week for your books to arrive, they will phone you to come and collect them.

MOD.1A (CARATERISTICAS DA DECLARACAO):

You have to take in your invoice books to Finance Office each April. Complete MOD.1A - It should include all expenditure for the past year. You may wish to employ an Accountant.

Invoicing clients:

It is up to you how you charge your clients for the IVA you are going to have to pay, please take advice on those before you start setting and advertising your charges for services etc.

You may want to charge clients an equal amount of IVA. It could be equivalent to 5% or 15% IVA. It depends on how much IVA the Finance Office say you should pay when you set up your business and register it with them.

Employment:

Those who are employed, earn a high level of income that is declared, or work differently to the above will have different conditions and other forms to complete.

Information :

There is only one person working in the Finance Office in Espargos who speaks some English.

There are Accountants in Cape Verde who will be able to advise you (in some English) on what you should do. Some are Portuguese Accountants but have been accepted as Accountants in Cape Verde.

You need to make your own enquiries as to whether you should pay your taxes in your home country or in Cape Verde!