Cabo Verde VAT Filing Guide 2026: DNRE Modelo 106 and Controls

Cabo Verde's IVA close is a monthly evidence job. The Direcao Nacional de Receitas do Estado, or DNRE, describes Modelo 106 as the periodic declaration that brings together taxable sales, purchases, regularisations and the resulting tax position. DNRE guidance says it is due by the last working day of the month after the transactions, and the authority publishes a separate 2026 fiscal calendar with exact dates.

This guide was verified on September 16, 2026 against the official 2026 State Budget in the Boletim Oficial, the current DNRE taxpayer guidance, the 2026 fiscal calendar, the Modelo 106 forms and instructions, and DNRE's official tourism-rate circular. The State Budget preserves an 8% treatment for electricity transmitted and water supplied to final consumers. That does not create a general 8% rate for unrelated supplies.

Use the Cabo Verde VAT Calculator to add or extract the confirmed 15% general rate, or the 8% rate only when the final-consumer electricity or water facts apply. The calculation stays in the browser. The tool does not register a taxpayer, decide whether an exemption applies, create a DNRE return, submit Modelo 106 or prove payment.

Cabo Verde IVA snapshot for 2026

The rate is only one field in the return. A correct 15% calculation can still produce a wrong filing if the invoice belongs in another period, a purchase is duplicated, an exempt supply is coded as taxable, or the customer and supplier annexes do not match the accounting records.

The 8% rule is deliberately narrow. Article 84 of the 2026 State Budget states that it applies to the transmission of electricity and supply of water to final consumers. It should not be extended to equipment, installation, maintenance, bottled water, a service bundle or another energy product without a current DNRE basis.

Confirm whether the transaction belongs in the VAT system

DNRE describes IVA as applying to supplies of goods, services and imports. Its current taxpayer page identifies businesses and public-law entities carrying on independent economic activity, persons making relevant independent taxable transactions, importers, and persons that improperly mention IVA on an invoice among the possible taxable persons.

Start with the legal identity and regime. Record the taxpayer name, NIF, registered activities, accounting regime, branches, IVA status, effective date and filing credentials. Link each field to a certificate, registration notice, portal record or current DNRE communication. A trading name on an invoice is not enough if the return is filed under a different legal identity.

Create a transaction map before coding rates. Separate local sales of goods, local services, continuous supplies, imports, foreign services, exports, exempt operations, credit notes, returns and private or non-business costs. The place, timing and customer facts can change the treatment even when two descriptions sound similar.

DNRE's guidance says IVA can become due when goods are placed at the customer's disposal, transport begins, installation is completed, services are performed, an import entry is processed, or the relevant period ends for continuous supplies. Confirm the legal tax point for the transaction instead of assuming the payment date always controls the IVA period.

If a business changes activity, legal form, address or regime, preserve the change notice and the effective period. Do not merge pre-change and post-change invoices into one undifferentiated register. The opening balance for a new period should be traceable to the accepted prior return.

Keep 15%, 8%, exempt and outside-scope treatment separate

Use at least four tax codes: taxable at 15%, taxable at the exact 8% final-consumer electricity or water rule, exempt under a cited provision, and outside the IVA scope. Add a fifth review code for transactions that have not yet cleared the evidence gate. A zero tax amount does not explain why no IVA was charged.

DNRE distinguishes exemptions without a right to deduct from exemptions with a right to deduct. That distinction matters because two invoices may both show no output IVA while producing different input-tax consequences. Store the exemption type, legal reference and supporting document instead of using one generic exempt code.

The authority's public guidance lists examples of internal exemptions and separately explains export-related treatment. Those lists are useful starting points, but a broad description such as food, health, education, agriculture, culture or export is not a complete classification. Confirm the exact transaction and current provision before finalising the return.

Mixed invoices need line-level treatment. If one document contains a general-rate service and a qualifying final-consumer electricity line, calculate and report the lines separately. Do not average the rates or apply the lower rate to the whole invoice.

Hotel and restaurant businesses should treat old rate notes cautiously. DNRE Circular 01/2022 states that the special 10% treatment ended and that the 15% general rate applied again from July 1, 2022. A saved template, supplier email or prior-year invoice does not override that official circular.

How to add and extract Cabo Verde IVA

For a VAT-exclusive amount at the 15% general rate, multiply the net amount by 0.15 and add the result. For a VAT-inclusive amount, divide the gross amount by 1.15 to find the net, or multiply the gross amount by 15 and divide by 115 to isolate the IVA. Apply a documented rounding rule and investigate differences between line totals and invoice totals.

These are factual arithmetic examples using published rates, not fictional taxpayer cases. CVE 100,000 is used only to make the formulas transparent. Use the Cabo Verde VAT Calculator for the arithmetic, then attach the local result to the actual invoice, legal treatment and Modelo 106 period.

A frequent error is multiplying a VAT-inclusive total by 15%. That calculates 15% of the gross amount instead of extracting the IVA already inside it. Use 15 divided by 115 for extraction. Another error is selecting 8% because a supply relates generally to utilities when the legal rule is tied to electricity or water supplied to a final consumer.

Build one controlled invoice and annex trail

For every sales document, record the supplier NIF, customer identity where required, invoice number, issue date, tax point, description, taxable base, rate, IVA amount, gross total and payment or settlement reference. Preserve credit notes and debit notes as linked documents. Never overwrite the original record after a correction.

DNRE's Modelo 106 guidance says transactions from the normal period belong in the customer and supplier annexes, while omitted or corrected transactions use the regularisation annexes. It also says a document containing different tax treatments should be split into separate lines with the relevant base, rate and tax.

Reconcile the sales annex to the invoice sequence, cash register, bank receipts, accounts receivable and general ledger revenue. Investigate missing numbers, duplicates, cancelled documents, manual invoices and invoices posted after the period was closed. A complete sequence is stronger evidence than a spreadsheet total that cannot be reproduced.

Reconcile the supplier annex to accounts payable, expense and asset ledgers, goods received, service acceptance, customs records and payment evidence. The supplier's tax amount is not automatically deductible simply because it appears on a document. Eligibility and business use still need review.

If filing data is generated from accounting software, retain the export version, mapping, validation log and accepted submission file. A later software update should not prevent the business from reproducing the return that was actually filed.

Review input IVA before deduction

Place purchase records into proposed deductible, blocked, mixed-use, pending evidence and duplicate-review groups. For each proposed deduction, confirm the supplier, invoice, NIF, date, description, taxable base, rate, IVA amount, receipt of the goods or services, business purpose and accounting entry.

DNRE's guidance explains that exemptions without a right to deduction and exemptions with a right to deduction have different outcomes. A business making both taxable and exempt supplies should not assume that every purchase tax amount is fully recoverable. Document the applicable allocation or limitation and obtain current advice when the treatment is uncertain.

Credit notes, returns and supplier corrections need a direct link to the original invoice, the reason, the accepted period and the relevant regularisation annex. A correction received after filing may require a later-period adjustment or replacement declaration. Preserve the original return and the approved correction trail.

DNRE says taxpayers must retain books, invoices, return notes and the other supporting records, including information about computerised processing, for five years. Treat that as a minimum evidence design. Store the filed return, annexes, acknowledgement and payment proof with the source records needed to reproduce them.

Handle imports and foreign services separately

For imported goods, DNRE's public guidance points to the Documento Alfandegario Unico, or DAU, as the customs record used for the supported import IVA. Reconcile the foreign supplier invoice, customs value, DAU reference, tax paid, landed-cost entry, inventory receipt and later disposal. Do not use the supplier invoice alone as proof of IVA paid at customs.

DNRE's Modelo 106 instructions describe separate records for the foreign supplier invoice and the customs document. They also explain that the DAU entry should carry the customs tax base and supported IVA in the relevant destination field. Keep the official instructions beside the mapping used by the accounting system.

For services purchased abroad, DNRE's guidance describes self-assessment in the supplier annex, using a non-CV origin code and the current normal rate, with the deduction percentage reflecting the actual right to deduct. If there is no deduction right, the filing must not create an artificial input credit.

Foreign-service rules depend on the actual service, place-of-supply facts, recipient and current law. Do not apply self-assessment only because the supplier is outside Cabo Verde, and do not omit it only because no local IVA appears on the invoice. Put uncertain services in review before the monthly close.

Close Modelo 106 by the official deadline

DNRE describes Modelo 106 as the monthly return that calculates the period's IVA from transactions recorded in the supporting annexes. Its current guidance says the declaration is due by the last working day of the next month. The official 2026 fiscal calendar turns that rule into exact dates and should be checked before each close.

1. Confirm the period and deadline. Record the transaction month, official calendar date, preparer, reviewer and payment owner.
2. Freeze the sales register. Capture every invoice, credit note, taxable base, rate, IVA amount and customer-annex line.
3. Freeze the purchase register. Link every proposed deduction to an accepted supplier invoice, business purpose, receipt and ledger entry.
4. Reconcile output IVA. Compare invoice totals with sales, cash, bank, receivables and the customer annex.
5. Review input IVA. Remove blocked, private, duplicate or unsupported amounts and document mixed-use treatment.
6. Review imports and foreign services. Match DAU and self-assessment entries to their source documents and fields.
7. Complete Modelo 106 and annexes. Keep 15%, restricted 8%, exempt and regularisation lines distinct.
8. Approve, submit and pay. Retain the accepted electronic return, acknowledgement, payment proof and ledger reconciliation.

Set internal cutoffs before the legal date. A practical team can freeze invoicing data early in the following month, complete reconciliations several working days later, and leave time for review, correction and payment. The internal plan does not extend the DNRE deadline.

If the portal is unavailable or the business discovers an omission, use the current DNRE support and replacement-declaration process. Do not silently change the accounting register after submission. Record what changed, who approved it, which return or annex was replaced and how the payment position moved.

A practical Cabo Verde monthly IVA checklist

• The taxpayer identity, NIF, activities, IVA status and filing credentials are current.
• The exact 2026 fiscal-calendar deadline is recorded and owned.
• Every 8% line is limited to qualifying electricity or water supplied to a final consumer.
• Every exemption states whether the right to deduct is preserved and cites evidence.
• Sales invoices, credit notes and customer-annex lines form a complete sequence.
• Supplier invoices and proposed deductions reconcile to receipt and business use.
• Imports link the foreign invoice, DAU, customs IVA and accounting entry.
• Foreign services have a documented place-of-supply and self-assessment decision.
• Modelo 106, annexes, submission acknowledgement and payment proof are stored together.
• Corrections preserve the original record, reason, approval and replacement evidence.

Official sources reviewed

The following primary sources were checked on September 16, 2026:

• Boletim Oficial, Lei no. 69/X/2025 approving the 2026 State Budget for Article 84 and the 8% IVA treatment for electricity and water supplied to final consumers.
• DNRE 2026 fiscal calendar for dated Modelo 106 submission and payment obligations.
• DNRE taxpayer, IVA and Modelo 106 guidance for taxable persons, tax points, exemptions, annexes, imports, foreign services, the monthly deadline and five-year record retention.
• DNRE forms and Modelo 106 source page for the official return, annexes, instructions and technical files.
• DNRE Circular 01/2022 for the return of hotel and restaurant services to the 15% general rate from July 1, 2022.
• DNRE other publications for the live official route to the 2026 fiscal calendar.

The official gazette, DNRE taxpayer guidance, forms page and publications page returned current content during review. The fiscal-calendar PDF was indexed with its Modelo 106 dates. The circular download is exposed through DNRE's official document library, although direct automated rendering of the file can be inconsistent. This guide therefore keeps the rate and deadline claims tied to the official gazette, live DNRE guidance and current calendar, and tells taxpayers to confirm the live portal before filing.

Continue with AfroTools

• Calculate Cabo Verde IVA and prepare a local invoice record.
• Compare a confirmed rate with the pan-African VAT calculator.
• Build an internal tax and filing calendar.
• Compare a separate Lusophone monthly IVA workflow.