St Vat Gst

---
name: st-vat-gst
description: "Use this skill for tax year 2026 working papers in Sao Tome and Principe (STP, jurisdiction ST). It covers IVA at 15%, the half-base rule for listed food, the Db 1,000,000 exemption regime, the special small-trader payments, monthly returns, reverse charge on services from non-residents, input deduction, and the 2026 Budget VAT and stamp duty measures. It says plainly which figures come from official texts and which remain unverified because the Finance Ministry site could not be opened. Trigger phrases: Sao Tome tax, STP tax, Direccao dos Impostos, dobras, Sao Tome e Principe imposto. It is general reference for working papers, not for filing without review by a qualified professional in the country."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/st-vat-gst"
  jurisdiction: "ST"
  tax_year: "2026"
  last_updated: "2026-11-01"
---

# Sao Tome and Principe VAT v0.2

> **Sourced from the law, in part.** Tax year 2026. The Finance Ministry site refused access on 1 November 2026, so the tax codes themselves were not read. Rows marked unverified carry older figures that no official page has confirmed. No accountant has signed this version and it has had no independent review yet.

## Who this applies to

Businesses, professionals, farmers, fishers and public bodies acting independently are taxable persons under [VAT Code art. 3](https://www2.camara.leg.br/saotomeeprincipe/diarios-da-an/xi-legislatura-22-11-2018/ii-serie-a/2.a-sessao/DAN30-IIS.pdf). Employees are not. Law 13/2019 approved the code. Law 2/2023 and Decree-Law 12/2023 changed it; those two texts were not read, so check any point below against them.

Older point, unverified: IVA has applied since 1 June 2023. The tax replaced earlier consumption taxes. The older skill named the general consumption tax, services tax, taxes on alcohol, spirits and cigarettes, telecoms and hotel tax, and restaurant tax; that list is unverified. The code read shows art. 2 revocations, not checked line by line.

## Rates, bands and thresholds

| Item | Amount / treatment | Tax year | Official source |
|---|---|---|---|
| Standard rate | 15% | 2026 | [VAT Code art. 16(1)](https://www2.camara.leg.br/saotomeeprincipe/diarios-da-an/xi-legislatura-22-11-2018/ii-serie-a/2.a-sessao/DAN30-IIS.pdf) |
| Listed food, Annex I, sold on the home market | 15% applied to 50% of the invoice total | 2026 | [VAT Code art. 16(2)](https://www2.camara.leg.br/saotomeeprincipe/diarios-da-an/xi-legislatura-22-11-2018/ii-serie-a/2.a-sessao/DAN30-IIS.pdf) |
| Exemption regime | Turnover below Db 1,000,000 in the prior calendar year; not public companies, SA companies or partnerships limited by shares | 2026 | [VAT Code art. 44(1)](https://www2.camara.leg.br/saotomeeprincipe/diarios-da-an/xi-legislatura-22-11-2018/ii-serie-a/2.a-sessao/DAN30-IIS.pdf) |
| Special payment, exemption regime | 7% of sales if turnover did not exceed Db 1,000,000 and no opt-out | 2026, 2019 text; art. 48 later amended | [VAT Code art. 48(1)](https://www2.camara.leg.br/saotomeeprincipe/diarios-da-an/xi-legislatura-22-11-2018/ii-serie-a/2.a-sessao/DAN30-IIS.pdf) |
| Lower small-trader band | unverified: art. 48(2) and (3) of the 2019 text conflict at Db 100,000 (nil against a fixed 2%). Art. 48 now has at least 7 paragraphs | 2026 | unverified |
| Special rate of 7.5% | unverified: reported only by a law firm alert of 1 June 2023 | 2026 | unverified |
| Billing software | Required from turnover of Db 1,000,000, or if organised accounts are required. Cost written off in one year | 2026 | [2026 Budget art. 8(12) and (13)](https://www2.camara.leg.br/saotomeeprincipe/diarios-da-an/xii-legislatura-8-11-22-a-8-11-26/ii-serie/7.a-sessao-legislativa-1/DAN14-IIS.pdf) |
| Stamp duty on small crop sellers | 1%, self-assessed by the buyer; cocoa, coffee, vanilla and other crops | 2026 | [2026 Budget art. 8(15) and (16)](https://www2.camara.leg.br/saotomeeprincipe/diarios-da-an/xii-legislatura-8-11-22-a-8-11-26/ii-serie/7.a-sessao-legislativa-1/DAN14-IIS.pdf) |
| Exempt supply, financed public projects | Supplies to state bodies or subcontractors on tenders funded by international financial institutions | 2026 | [2026 Budget art. 8(19) and (20)](https://www2.camara.leg.br/saotomeeprincipe/diarios-da-an/xii-legislatura-8-11-22-a-8-11-26/ii-serie/7.a-sessao-legislativa-1/DAN14-IIS.pdf) |

## The base

Tax due is taxable operations times the rate, less deductible input tax under arts. 21 to 26 ([art. 28(3)](https://www2.camara.leg.br/saotomeeprincipe/diarios-da-an/xi-legislatura-22-11-2018/ii-serie-a/2.a-sessao/DAN30-IIS.pdf)). Tax on some items is deductible at 50% only (art. 22(3)). A business on the exemption regime has no right to deduct (art. 44(4)). Exports and related transport are covered by art. 20; internal exemptions by art. 17; import exemptions by art. 18. The older skill said reduced and zero rates exist; the code read has one rate plus the half-base rule, with art. 20 relief for exports.

## Deadlines and filing

Start of activity: declare 15 days before it begins (art. 31). Changes: within 30 days (art. 32). Cessation: within 30 days (art. 33). Invoice: within 8 days (art. 34).

The periodic return is monthly and goes in electronically by the last day of the following month, with payment at the same time ([arts. 29(1)(c), 28(1), 37](https://www2.camara.leg.br/saotomeeprincipe/diarios-da-an/xi-legislatura-22-11-2018/ii-serie-a/2.a-sessao/DAN30-IIS.pdf)). A nil return is still required (art. 29(3)). Import VAT is paid by the importer (art. 28(5)).

How-to, portal, form boxes: unverified. The Tax Directorate page for this task could not be opened.

## Penalties and interest

If a return is missing, the Directorate assesses from past returns or other data, and tax is due within 30 days of notice. Non-payment starts the procedure in art. 79 of the Tax Process Code and can lead to suspension of taxpayer status or a frozen bank account. Filing the return and paying with compensatory interest within that period cancels the assessment ([VAT Code art. 50](https://www2.camara.leg.br/saotomeeprincipe/diarios-da-an/xi-legislatura-22-11-2018/ii-serie-a/2.a-sessao/DAN30-IIS.pdf)). Penalty amounts: unverified.

## Cross-border points

A taxable buyer accounts for the tax on services located in STP when the supplier is non-resident with no permanent establishment ([VAT Code art. 27(2)](https://www2.camara.leg.br/saotomeeprincipe/diarios-da-an/xi-legislatura-22-11-2018/ii-serie-a/2.a-sessao/DAN30-IIS.pdf)). Place of supply is in art. 10: for a taxable buyer, where the buyer has its seat or establishment. Non-resident taxpayers have their own duties in art. 30.

## Two worked examples that recompute

**Example 1, normal month.** Standard sales of Db 100,000, listed food invoices of Db 20,000, deductible input tax of Db 8,000.

```oa-check
name: Monthly VAT
inputs:
  standard: 100000
  food: 20000
  input_vat: 8000
steps:
  - output: standard * 0.15 + food * 0.5 * 0.15
  - payable: output - input_vat
expected:
  output: 16500
  payable: 8500
```

**Example 2, decision: stay on the exemption regime or opt out.** A trader with sales of Db 800,000 pays 7% with no deduction. Compare with normal VAT on margin if customers can bear it; the art. 48 text is the 2019 version, so confirm first. If purchases carrying VAT are Db 500,000, normal VAT is lower.

```oa-check
name: Exemption regime against normal VAT
inputs:
  sales: 800000
  purchases: 500000
steps:
  - special: sales * 0.07
  - normal: (sales - purchases) * 0.15
  - saving: special - normal
expected:
  special: 56000
  normal: 45000
  saving: 11000
```

## Ask the client first

- Turnover in the last calendar year, and legal form
- Any sales of Annex I food
- Any services bought from non-residents
- Imports or exports
- Whether it opted out of the exemption regime

## Sources

| Source | URL | Read on |
|---|---|---|
| VAT Code final text, Bill 05/XI/2.a/2019, arts. 3, 16, 27 to 30, 37, 44, 48 to 50 (later amendments not read) | https://www2.camara.leg.br/saotomeeprincipe/diarios-da-an/xi-legislatura-22-11-2018/ii-serie-a/2.a-sessao/DAN30-IIS.pdf | 2026-11-01 |
| 2026 Budget Bill 51/XII/7.a/2025, art. 8 to 9 (only this part read) | https://www2.camara.leg.br/saotomeeprincipe/diarios-da-an/xii-legislatura-8-11-22-a-8-11-26/ii-serie/7.a-sessao-legislativa-1/DAN14-IIS.pdf | 2026-11-01 |
| Assembly debate of 11 Feb 2026 on the Budget, art. 8 changes and final vote (pp. 315 to 321 read) | https://www2.camara.leg.br/saotomeeprincipe/diarios-da-an/xii-legislatura-8-11-22-a-8-11-26/i-serie/7.a-sessao-legislativa/DAN13-IS.pdf | 2026-11-01 |

The Assembly of Sao Tome and Principe publishes its Diario on www2.camara.leg.br, hosted by the Brazilian Chamber of Deputies. The Ministry of Finance site (financas.gov.st) answered 403 by fetch and in a browser tab on 2026-11-01 and was not read.

Not yet confirmed: Text of Law 2/2023 and Decree-Law 12/2023 and any 2026 decree under the budget power to amend the VAT Code; current art. 48; current Annex I; penalties; e-filing portal and return boxes; the 7.5% rate; list of taxes replaced.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-11-01. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `st-vat-gst` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/st-vat-gst. If neither is available, confirm every figure against the official source pages cited above before relying on it.