On 17 January 2024, the Mozambique Tax Authority released a public notice affirming the discontinuation of the VAT exemption previously applied to sugar, soaps, and cooking oils. The VAT exemption applies to their raw materials, intermediary products, and manufacturing equipment and parts. This exemption ceased on December 31, 2023. Consequently, these products, materials, and equipment are now subject to the standard VAT rate of 16%, effective 1 January 2024.
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