Standard 15% VAT, reduced rates available. Calculate VAT-inclusive, VAT-exclusive, reverse VAT extraction, and multi-item invoice totals. Accurate 2026 DGCI rates.
Calculate how much VAT the buyer withholds and remits to the tax authority on this transaction.
Cape Verde (Cabo Verde) applies a value-added tax known as Imposto sobre o Valor Acrescentado (IVA) at a standard rate of 15%. The IVA was introduced in 2004 as part of a comprehensive tax reform to modernize the country's revenue system. As a small island developing state, Cape Verde relies heavily on indirect taxes like IVA for government revenue. There is a reduced rate of 10% for certain hotel and restaurant services within designated tourism development zones. Exports of goods and services are zero-rated. Exempt supplies include healthcare services, education, financial and insurance services, residential rentals, and basic food items such as rice, maize, and cooking oil. The Direcção Nacional de Receitas do Estado (DNRE) administers the IVA system. Businesses with annual turnover exceeding CVE 5 million must register for IVA. Returns are filed on a monthly basis for larger taxpayers and quarterly for smaller businesses, with payment due by the end of the following month. Cape Verde has invested in electronic filing and digital tax administration. The country's open economy and dependence on imports mean IVA on imported goods is a significant revenue source.
The standard IVA rate in Cape Verde is 15%, applied to most goods and services. A reduced rate of 10% applies to certain tourism-related services in designated development zones. Exports are zero-rated.
IVA was introduced in Cape Verde in 2004 as part of a comprehensive tax reform. It replaced the previous turnover tax and was designed to create a more efficient and transparent tax system for the island economy.
IVA-exempt supplies include healthcare services, educational services, financial and insurance services, residential rentals, and basic food items such as rice, maize, and cooking oil. These exemptions help protect lower-income households.
Businesses with annual turnover exceeding CVE 5 million are required to register for IVA. Smaller businesses may fall under simplified tax regimes or may voluntarily register to reclaim input IVA on their purchases.
Larger taxpayers file monthly IVA returns, while smaller registered businesses may file quarterly. Returns and payments are due by the end of the month following the reporting period. Electronic filing is available through the DNRE.