Proposed, not yet law: Cabo Verde's 2027 Budget bill would set VAT on electricity and water at 8%
This change is proposed and is not law. The rules below describe what would change if it is adopted.
- Jurisdiction
- Cabo Verde
- Tax
- VAT
- Change type
- Rate change
- Status
- Proposed
- Impact
- FYI
- Effective
- 1 January 2027
- Authority
- Ministério das Finanças, Cabo Verde
- Systems
- Tax engine, Invoicing
- Verified
- Fetched from official source · high confidence
Suppliers of electricity and water in Cabo Verde, their business customers that are VAT taxable persons, and final consumers.
No action — monitoring only.
Tax engineInvoicing
Article 21 of Cabo Verde's 2027 State Budget bill provides that the VAT rate on the supply of electricity and of water is 8%, applying to taxable persons and final consumers to facts occurring after the law enters into force (1 January 2027). Article 19 would also exempt from VAT during 2027 imports of goods covered by article 60 of the Tax Benefits Code (health sector). Bill stage only; it has not been adopted by the National Assembly.
What changed in detail
This is a bill stage only; the National Assembly has not adopted it. Article 21 of Cabo Verde’s 2027 State Budget bill provides that the VAT rate on the supply of electricity and of water is 8%, applying to taxable persons and to final consumers. The rate would apply to facts occurring after the law enters into force, which the bill sets at 1 January 2027.
Article 19 of the same bill would also exempt from VAT during 2027 imports of goods covered by article 60 of the Tax Benefits Code (health sector).
What it means
If the article is adopted as drafted, utilities would bill electricity and water at 8% for supplies after the law takes effect. Because the rate attaches to facts occurring after entry into force, billing cut-off around 1 January 2027 will matter. Until the Assembly votes, nothing changes.
Proof
1- A taxa do IVA na transmissão de energia elétrica e na transmissão de água é de 8% e é aplicável aos sujeitos passivos do imposto e aos consumidores finais.1- The VAT rate on the supply of electricity and the supply of water is 8% and applies to taxable persons and to final consumers.
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