Madagascar — Value-added tax (VAT)
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Madagascar's general VAT rate is 20%, with other rates including 0% that can apply to certain transactions. The Value-added tax (VAT) is administered by the Ministry of Finance and Budget (www.mefb.gov.mg) in Antananarivo.
Madagascar is a member of the Common Market for Eastern and Southern Africa (COMESA); Tarif Préférentiel Spécial with China (TPS); Système Generalisé de Préférences (SGP); Commission de l`Océan Indien (COI); Accord de Partenariat Economique (APE); Southern A trading bloc, which may affect international VAT collection and regulations.
Madagascar's consumption tax is called the Value-added tax (VAT), which was introduced in January 1962.
Madagascar VAT rates for 2020
- Other treatment
- Exempt; exempt with credit
Madagascar VAT number format
Businesses in Madagascar that are required to collect tax will be issued an identification number. Tax identification numbers can be verified with the Ministry of Finance and Budget, and will follow a certain format. The VAT number format is Not applicable.
Madagascar Value-added tax (VAT) Thresholds
These are the revenue thresholds at which businesses in Madagascar are required to start collecting and remitting tax.
- MGA200,000,000 (annual turnover exclusive of taxes)
Recovery of VAT by non-established businesses
Non-established businesses are small, unincorporated businesses that sell taxable goods and may consist of a single individual, or several. Non-incorporated businesses in Madagascar are not required to collect taxes from the consumer.
Madagascar VAT Refunds
Many countries allow tourists, and others making purchases for export, to receive a VAT refund on exiting the country (or make purchases VAT free). While we don't have data on the Madagascar VAT refund program, more info can be obtained from the Ministry of Finance and Budget.
Madagascar Tax Sources & Citations
- EN: Madagascar Value Added Tax
- RU: НДС
- CN: 增值税
- Madagascar Ministry of Finance and Budget (www.mefb.gov.mg)
- Ernst & Young global VAT tax study, Madagascar (updated 2020)
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