Madagascar VAT
Calculator 2026

Standard 20% VAT. Calculate VAT-inclusive, VAT-exclusive, reverse VAT extraction, and multi-item invoice totals. Accurate 2026 DGI rates.

DGI 2026 Standard 20% Zero-Rated Exports MGA · Malagasy Ariary

Last verified: 2026 · Source: DGI (mef.gov.mg)

2026 Rates: Standard VAT rate is 20%. Zero-rated: Export goods, Tourism. Exempt: Basic food staples, Agricultural inputs, Medical services. Registration threshold: MGA 400M/year. Tax authority: DGI.

VAT Calculator MGA · Malagasy Ariary
Calculation DirectionWhich amount do you have?
Pre-Tax Amount (MGA) Ar10,000
Ar100Ar10M
AmountOr type exact value
Ar
VAT RateSelect applicable rate
Total (VAT Inclusive)
Ar0
Pre-Tax Amount —
VAT Amount —
Applied Rate 20%
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.

AI VAT Advisor Powered by Claude
Ask me anything about VAT in Madagascar — registration thresholds, exempt categories, filing deadlines, how to calculate VAT on mixed supplies.
VAT Registration
Annual Turnover Threshold
MGA 400M
Register with DGI when turnover exceeds this
Standard Rate20%
Tax AuthorityDGI
CurrencyMGA (Ar)
Tax Year2026
Zero-Rated (0%)
→ Export goods
→ Tourism
VAT Exempt Items
✓ Basic food staples
✓ Agricultural inputs
✓ Medical services
✓ Educational services
Disclaimer: Rates are for guidance only. Always verify with DGI (mef.gov.mg) for official rates and your specific tax situation. AfroTools is not a tax advisor.
Madagascar VAT Calculator
Madagascar VAT Calculator
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FAQ

Madagascar VAT — Common Questions

What is the standard VAT rate in Madagascar?
The standard VAT rate in Madagascar is 20% as of 2026. This is levied on most goods and services sold within Madagascar.
How do I add VAT to a price in Madagascar?
Multiply the pre-tax price by 1.2000 (i.e., price × (1 + 0.2)). Example: Ar10,000 × 1.2000 = Ar12,000 including VAT.
How do I remove VAT from a price in Madagascar?
Divide the VAT-inclusive price by 1.2000. Example: Ar12,000 ÷ 1.2000 = Ar10,000 pre-tax.
What goods are VAT exempt in Madagascar?
VAT-exempt goods and services in Madagascar include: Basic food staples, Agricultural inputs, Medical services, Educational services. Zero-rated (taxable at 0%) include: Export goods, Tourism.

VAT in Madagascar: Key Facts

Madagascar applies a value-added tax known as Taxe sur la Valeur Ajoutée (TVA) at a standard rate of 20%, one of the highest rates in Africa. The TVA has been a core component of Madagascar's tax system for several decades. There is no generally applied reduced rate. Certain goods and services are exempt from TVA, including basic food products (rice, cassava), medical and pharmaceutical services, educational services, financial and banking transactions, and agricultural inputs. Exports, including vanilla, cloves, and other agricultural products, are zero-rated. The Direction Générale des Impôts (DGI) administers TVA collection. Businesses with annual turnover exceeding MGA 400 million must register for TVA. Monthly TVA returns must be filed by the 15th of the following month. Madagascar has been modernizing its tax administration with electronic filing capabilities and efforts to reduce the large informal economy. The government has focused on broadening the tax base rather than raising rates further. Input TVA can be deducted against output TVA, with refund provisions for businesses with net credits, particularly exporters. The high TVA rate underscores the importance of this tax for government revenue in an economy with a relatively narrow formal sector.

Common Questions About Madagascar TVA

Why is Madagascar's TVA rate 20%?

Madagascar's 20% TVA rate is one of the highest in Africa. The high rate reflects the need to generate significant revenue from a relatively narrow formal tax base. The government has focused on broadening the base rather than further rate increases.

What items are exempt from TVA in Madagascar?

Exempt items include basic food products (rice, cassava), medical and pharmaceutical services, educational services, financial and banking transactions, agricultural inputs, and certain basic necessities.

What is the TVA registration threshold in Madagascar?

Businesses with annual turnover exceeding MGA 400 million must register for TVA with the Direction Générale des Impôts. Smaller businesses may fall under simplified tax regimes.

How often are TVA returns filed in Madagascar?

Monthly TVA returns must be filed by the 15th of the following month. Payment must accompany the return. The DGI has been introducing electronic filing capabilities.

Are exports zero-rated in Madagascar?

Yes, exports including vanilla, cloves, lychees, and other agricultural and mineral products are zero-rated. This allows exporters to reclaim input TVA on purchases related to their export activities.

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Official evidence

Sources & verification

This high-stakes calculator links the authority sources, method notes, test cases, and limitations used to check the numbers shown on this page.

Last verified 2026-01-01

Madagascar - high risk - AfroTools source audit

Official source links

Law, regulation, or version

Last verified: 2026 · Source: DGI (mef

Calculation methodology

The calculator splits the entered amount into net amount, VAT, and VAT-inclusive total using the displayed standard or custom VAT rate. Zero-rated and exempt categories are treated as decision guidance and must be confirmed against the linked authority material before filing.

Known limitations

  • Informational estimate only. It is not professional tax, legal, payroll, or filing advice.
  • Product classification, exemption, and zero-rating rules can require invoice-level review.
  • Sector-specific, regional, treaty, relief, and special-regime rules may not be fully modeled.
  • Confirm filing, registration, and remittance duties with the official authority or a qualified adviser before submission.

Test-case examples

Input: Net amount: 1,000 at the displayed standard VAT rate.
Expected: VAT equals 1,000 multiplied by the displayed rate; total equals net amount plus VAT.
Why: Confirms the core VAT-exclusive calculation path and makes the rate dependency auditable.

Input: VAT-inclusive amount with the displayed standard VAT rate.
Expected: Net amount equals total divided by 1 plus the rate; VAT equals total minus net amount.
Why: Confirms reverse VAT handling for invoices that already include tax.

Change history

  • 2026-05-02: Trust and verification panel added with source links, methodology, limitations, and report-error CTA.

AfroTools calculators are decision-support tools. Always confirm filing, registration, and remittance duties with the linked authority or a qualified local adviser.

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