Fiscal Machines transform the Mozambican tax system

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With the pilot phase almost coming to an end, the Mozambican Tax Administration is preparing to implement the electronic issuance of invoices through the Fiscal Machine Management Systems, which will modernize revenue collection and combat tax evasion.

Until the end of March, in the province of Maputo, the experimental phase of implementing the Fiscal Machines in Mozambique will take place, a tax collection model that uses technology to improve the management of taxpayers in terms of Value Added Tax (VAT) and the Simplified Tax for Small Taxpayers (ISPC). Once the testing period in the capital is over, the Fiscal Machines system will be extended to other provinces, with the Tax Administration (AT) aiming to collect around 265.6 million meticais through this new tax collection model in 2021.

The conditions and procedures related to the mandatory use of japan whatsapp number database Machines in the transmission of goods and services carried out by taxable persons are regulated by the Fiscal Machines Regulation (RMF), approved by Decree No. 92/2014 of December 31.

The Regulation applies in the following situations:

1. To VAT taxable persons exempted from the obligation to issue invoices, but with the obligation to issue sales receipts, in accordance with the respective code,
2. To ISPC taxable persons whose annual sales volume, from the previous or provisional fiscal year, is equal to or greater than 1,200,000.00 MT.

What are Fiscal Machines?

According to the Fiscal Machines Regime, the following equipment is considered a Fiscal Machine: the fiscal register and the fiscal printer . In the case of the fiscal printer, this is a printer connected to a computer program certified by the Tax Authority, which aims to issue fiscal documents. The fiscal register is also considered a Fiscal Machine when properly connected to the fiscal printer or other compatible devices.

These are the equipment provided for in the legal framework of the Fiscal Machines Regime, however, the tax administration may, at the express request of the supplier, authorize the use of other devices equivalent to the Fiscal Machine, as a result of technological developments.

IT system for managing tax machines

The Tax Machine Management IT System consists of a computer program duly certified by the Tax Administration, which must be used by companies or taxpayers to issue invoices electronically through the Tax Machines. Therefore, from the moment that Decree No. 92/2014 of 31 December comes into force, only invoicing systems authorized by the Tax Administration may be used to issue invoices.

How do I know if a computer program is authorized by the AT?

Software producers will have to submit their software for analysis by Tax Authority experts, who will assess whether the systems comply with the rules for electronic invoice issuance set out in the legislation. In cases where the software complies with the Tax Authority's tax requirements, it will be authorised by assigning a reference number to the software, which certifies validation by the Tax Authority. Only suppliers who obtain this certification will be considered suppliers authorised by the Tax Authority.

As soon as the legislation comes into force, inspectors are expected to be on the ground to check whether companies are complying with the provisions of the Law. To ensure that you are operating within the law, you will need to ensure the following:

Purchase the tax machine from an authorized supplier or distributor;
Ensure that the machine is delivered to you together with the respective inspection report at the time of purchase;
Ensure that the supplier carries out regular maintenance/updates of tax machines;
Issue a tax receipt for payments for sales made and services provided;
Submit to the tax authorities the monthly sales summary extracted from the tax machine;
Do not use in the same location another type of invoicing equipment that is incompatible with the Fiscal Machines typified in this Regulation.

PRIMAVERA solutions in the process of authorization at AT

PRIMAVERA is a software provider that has been present in the Mozambican market for around 20 years, having supported the management of thousands of companies over almost two decades. In this very important phase of the evolution of the country's tax system, PRIMAVERA has been working alongside the Tax Authority from the very beginning, having already developed a version of the software for the pilot project for use tests by some clients, sharing its international experience in digitalizing tax reporting processes with the Tax Authorities.