Government rules out double taxation with the legal regime for digital services and electronic commerce

Praia, Jan 25 (Inforpress) – The Minister of Industry, Trade and Energy, Alexandre Monteiro, has guaranteed that there will be no double taxation with the creation of the legal regime for digital services and e-commerce, currently being discussed in Parliament.

He was responding to a concern of the parliamentary group of the African Party of Independence of Cabo Verde (PAICV – opposition), which, through its deputy Clóvis Silva, drew attention to the possibility of this legal regime causing double taxation and/or multi-taxation.

“When we pay for a product, the cost we receive for the product already includes VAT, as it is mandatory. This is the rule and it doesn’t just apply here. And when we make the payment through the banking system it is deductible that we pay the tax, including in the price. Whoever invoices us, invoices us taking into account some legislation that is where they are based and where they deliver the tax they charge”, he explained.

The problem, according to the PAICV deputy, is that when you give the bank a payment order, this institution makes it without knowing who the payment is being made to, and is obliged to collect the taxes after a certain amount.



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