Episode Description:

VAT—known locally as Taxe sur la Valeur Ajoutée (TVA)—is one of the most important indirect taxes in Madagascar. In this episode, we break down how VAT works, who needs to register, and what businesses need to know to stay compliant.

What You’ll Learn in This Episode:

💡 Standard VAT Rate & Principles

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• Rate: 20% on most goods and services.
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• Scope: Applies to supplies of goods and services made in Madagascar, as well as imports.
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• Calculation: Based on the value of goods/services, including all costs and taxes—but excluding VAT itself.
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📝 VAT Registration & Compliance

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• Mandatory Registration Thresholds:
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• Sale of goods: Annual turnover ≥ MGA 100,000,000.
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• Provision of services: Annual turnover ≥ MGA 50,000,000.
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• Optional Registration: Businesses under the threshold may register voluntarily, often to reclaim input VAT on expenses.
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🎯 Why This Matters:

Understanding VAT is crucial for businesses operating in Madagascar. Knowing when registration is required, and how VAT applies to transactions, ensures compliance while helping companies avoid penalties and take advantage of input tax recovery where applicable.