Cape Verde VAT
Calculator 2026

Standard 15% VAT, reduced rates available. Calculate VAT-inclusive, VAT-exclusive, reverse VAT extraction, and multi-item invoice totals. Accurate 2026 DGCI rates.

DGCI 2026 Standard 15% Reduced Rate(s) Zero-Rated Exports CVE · Cape Verdean Escudo

Last verified: 2026 · Source: DGCI (mf.gov.cv)

2026 Rates: Standard VAT rate is 15%. Reduced rates: 6% (Reduced). Zero-rated: Export goods, Tourist services. Exempt: Basic food products, Medical services, Educational services. Registration threshold: CVE 2M/year. Tax authority: DGCI.

VAT Calculator CVE · Cape Verdean Escudo
Calculation DirectionWhich amount do you have?
Pre-Tax Amount (CVE) Esc10,000
Esc100Esc10M
AmountOr type exact value
Esc
VAT RateSelect applicable rate
Total (VAT Inclusive)
Esc0
Pre-Tax Amount
VAT Amount
Applied Rate 15%
VAT as % of Total 0%
Annual projection (×12)
Formula Used

Calculate how much VAT the buyer withholds and remits to the tax authority on this transaction.

FAQ

Cape Verde VAT — Common Questions

What is the standard VAT rate in Cape Verde?
The standard VAT rate in Cape Verde is 15% as of 2026. Reduced rates: 6% (Reduced). This is levied on most goods and services sold within Cape Verde.
How do I add VAT to a price in Cape Verde?
Multiply the pre-tax price by 1.1500 (i.e., price × (1 + 0.15)). Example: Esc10,000 × 1.1500 = Esc11,500 including VAT.
How do I remove VAT from a price in Cape Verde?
Divide the VAT-inclusive price by 1.1500. Example: Esc11,500 ÷ 1.1500 = Esc10,000 pre-tax.
What goods are VAT exempt in Cape Verde?
VAT-exempt goods and services in Cape Verde include: Basic food products, Medical services, Educational services. Zero-rated (taxable at 0%) include: Export goods, Tourist services.

VAT in Cape Verde: Key Facts

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.

Common Questions About Cape Verde IVA

What is the standard IVA rate in Cape Verde?

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.

When was IVA introduced in Cape Verde?

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.

What goods are exempt from IVA in Cape Verde?

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.

What is the IVA registration threshold in Cape Verde?

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.

How often must IVA returns be filed in Cape Verde?

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.

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