Requesting an invoice in Cape Verde will give you the right to a prize draw

The Cape Verdean government plans to launch sweepstakes next year to award prizes to taxpayers who ask for invoices and receipts with a tax identification number, assuming that this is a way to curb tax evasion.

The Cape Verdean government plans to launch sweepstakes next year to award prizes to taxpayers who ask for invoices and receipts with a tax identification number, assuming that this is a way to curb tax evasion.

The objective is set out in the proposed State Budget law for 2021, which parliament should start discussing in the next few days, and which in its article 50 provides for a legislative authorization to the Government for “approval of the draw for tax relevant documents issued and communicated” to the Cape Verdean tax authorities.

In practice, the expected approval - given the support of the parliamentary majority to the Government - of the budget proposal for 2021 will allow the executive to approve and regulate the legal regime for “a drawing for the award of a prize to natural persons”, whose tax identification number is “associated” with an invoice, invoice-receipt, sales receipt or income receipt communicated to the National Directorate of State Revenue (DNRE).

“The awarding of the prizes is aimed at preventing tax fraud and evasion, valuing the performance of citizens in demanding invoices, invoice-receipts, sales receipts or income receipts proving the completion of a taxable transaction for the purposes of VAT [Tax on Value Added] or IRPS [Income Tax for Individuals], as applicable, located in national territory ”, reads the budget proposal, the last of the legislature, taking into account the holding of legislative elections in March.

The proposal, which comes at a time when the country is also introducing the electronic invoice model, requires that the future total value of the premiums to be attributed each year - still to be defined - be “legally established” in advance, with “support” in expenditure registered in the State Budget ”.

"The acquisition of prizes is ensured by DNRE, which must follow the procedures provided for in the Public Procurement Code", reads the same article of the State Budget law proposal, which gives 180 days (until the end of June 2021) to legislate on this invoice prize draw model.

Cape Verde's public finances are expected to post a deficit of 8,8% of gross domestic product (GDP) in 2021, due to the crisis caused by the covid-19 pandemic, after a historical high of 11,4% in 2020, according to the Government.

The data are contained in the documents supporting the proposed 2021 State Budget law, which amounts to 77.896 million escudos (706,4 million euros).

This is an increase of 27,3 million euros in relation to the amending budget still in force, prepared due to the crisis caused by the covid-19 pandemic.

After a historic recession, between 6,8% and 8,5% this year, the Cape Verdean government admits an economic growth of 4,5% next year, but only if the country is able to control the pandemic and if the international mismatch.

For the next economic year - marked by the holding of legislative and presidential elections - the Cape Verdean government also predicts inflation of 1,2%, a budget deficit of 8,8%, an unemployment rate to be reduced by 19,2% to 17,2% and a public debt of 145,9% of GDP.

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