Have you been through this? You find exactly the course your company needs. Or that software that solves an old problem. You click buy, pay with your company card, receive a confirmation email. Then comes the question: now how am I going to justify this to the accountant?
If you've ever had this moment, you know what we're talking about. The question always comes up: what if there's no invoice? What if the supplier doesn't even know what a Cape Verdean tax invoice is?
There is a solution. You don't have to stop making important purchases just because you're afraid of the bureaucracy. We'll explain how it works, what the DNRE accepts and how to organise the documentation without headaches.
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Today, your company can hire a specialist in Australia, buy software from an American start-up or order equipment from a Chinese supplier. All with a few clicks.
The problem starts when you need to organise the paperwork. Many international suppliers don't issue invoices in the format we know. Online course platforms, software companies, digital service providers. Some don't even know that Cape Verde exists, let alone our tax requirements.
Result: payment made, incomplete documentation, company in the middle without knowing how to resolve it.
This happens every day. And it has a solution.
Let's get down to business. The National Directorate of State Revenue (DNRE) requires that all expenses declared by your company have documentary proof. This is used to calculate IRPC (Corporate Income Tax) and to ensure that the expenses are real and related to the company's activity.
The ideal, of course, would always be to have an invoice. But when this isn't the case, there are alternatives that can be accepted by the tax authorities. The important thing is to be able to prove three basic things:
When you can demonstrate this in a solid way, the DNRE accepts the expense in the accounts. The question is how to do it properly.
We've already realised that the invoice doesn't always appear. Now comes the practical part: what serves as alternative proof?
Bank statement or proof of payment
This is the first document you always need to keep. The company account statement shows that the payment has been made. If you used a Visa card from your current account, even better, because everything is recorded at the bank. This document proves that the money went out and where it went.
But be careful: the statement alone isn't enough. It shows that you've paid, but it doesn't explain what or why. That's why you need to supplement it with other elements.
Payment receipt or purchase confirmation
When you buy a course online, you usually receive a confirmation email. When you buy equipment on an international website, you receive an order confirmation. These documents are precious. Keep them all.
The receipt should show the name of the supplier, a description of what you bought, the amount paid and the date. The more complete it is, the better. If it's in English or another language, there's no problem, but having a simple translation will help when it comes time to justify it to your accountant.
Contract or terms of service
For courses, software subscriptions or ongoing services, there is often a contract or document with terms. This paper is important because it shows the conditions of the purchase and reinforces that it is a legitimate business relationship.
Purchase order or simplified invoice
Some international suppliers issue a document called an “invoice” which is not really a tax invoice, but serves as commercial proof. Even if it doesn't have all the requirements of a Cape Verdean invoice, this document helps to substantiate the expense.
Internal company statement
In situations where there is very little documentation from the supplier, you can prepare an internal declaration. This document, signed by the manager or financial officer, explains the nature of the purchase, why it was necessary for the business and attaches all available evidence.
The declaration doesn't replace the other documents, but it acts as an additional piece that puts everything into context. It shows that there is transparency and that the company is acting in good faith.
That's all well and good in theory, but let's see how this works in the day-to-day running of your company.
International online course
Imagine you need to take a digital marketing on an American platform. You pay 500 dollars with the company card. The platform sends a confirmation email with the name of the course, the date of access and the amount paid. There is no traditional invoice.
What to do? Gather the bank statement showing the debit, the confirmation email from the platform, and prepare a brief explanatory note: “Digital marketing training to improve the team's commercial skills, in line with the company's growth strategy”.
With these three elements together, your accountant will be able to record the expense, although each case can be analysed in advance.
Technical equipment or material
Your company needs specific equipment that can only be found on international sites. You buy it from a European online shop. A simplified invoice arrives by email and the equipment is delivered by courier.
Here you have even more elements: invoice from the supplier, bank statement, international transport note (AWB or tracking), and possibly the customs document if there is customs clearance. All this documentation together perfectly covers the operation.
Don't forget that, depending on the value and type of goods, there may be import taxes and VAT at customs. These documents are also included in the accounts.
Software or SaaS subscription
You have subscribed to management software, a CRM or a design tool. You pay monthly or annually, automatically charged to your card. The software company sends you an email every month with your receipt.
Keep all these emails. At the end of the year, your accountant will add everything up and enter it as a recurring expense. As it's an ongoing service, the sequence of monthly receipts shows consistency and reinforces legitimacy.
International consultancy or professional service
You hired a foreign consultant for a specific project. You agreed by email, the service was provided, and payment was made by bank transfer. The consultant sent a simple document confirming receipt, but no formal invoice.
In this case, attach the email exchange in which the service was agreed, proof of bank transfer, the consultant's confirmation document and a brief internal report on the work carried out. This gives substance to the operation and justifies the expense to the DNRE.
You might be thinking: do I have to store all this and organise it myself?
No. This is exactly what an accountant is for. A good accounting doesn't just put numbers into the system. It guides, advises and organises.
When a customer brings such a situation to S&D, we do the following. First, we understand the operation. What kind of expense it is, who the supplier is, what documentation already exists. Then we advise them on what's missing. If there are gaps, we suggest how to fill them. Sometimes it's drawing up an internal declaration, other times it's contacting the supplier again. Each case requires a unique analysis.
We then organise everything in a tax file. This file accompanies the bookkeeping and is available for any future DNRE inspection. It's a complete file of each operation, all justified.
And then, this is important, we ensure that the expenditure is correctly categorised. Courses are classified as training. Equipment as investment. Software as external services. Each thing in its place, according to the Chart of Accounts and the law.
Working with an accountant who knows what they're doing saves you time and reduces risks. Because it's one thing to have the papers, it's another to know how to present them correctly.
When it comes to higher amounts, the attention is doubled. If you're buying equipment worth 10,000 dollars or contracting an international service worth 5,000 euros, DNRE will take a closer look.
In these cases, it pays to do things right from the start.
Always try to have a formal contract. Even if the supplier doesn't usually issue one, insist on it. A contract signed by both parties is much more solid.
Document the decision-making process. Minutes of a meeting or an internal email in which the purchase was discussed and approved shows that it was analysed, not an impulse purchase.
Ask the supplier for a more complete document. Explain that you need it for tax purposes in your country. Many suppliers, once they realise the situation, cooperate.
Keep correspondence clear. Emails exchanged about the service or product help to contextualise and show that there is a real business relationship.
And, crucially, involve your accountant from the outset. Talk to them before you make the purchase. He can advise you on the best way to structure the operation to make it easier to justify later.
This is the question that most concerns me. What if the DNRE doesn't accept it? What if there's an inspection and they think it's not well justified?
Let's be blunt. If you've done your homework and gathered the documentation we've mentioned, there's hardly a problem. DNRE is not hunting for honest companies. What they want is consistency, transparency and reasonable proof.
If there are any questions, that's where you see the difference in having organised accounting. The accountant knows the procedures, knows how to dialogue with the DNRE, clarifies doubts.
And remember, the tax authorities look at the whole picture. If your company's bookkeeping is up to date, its tax returns are filed on time, its documentation is organised and it has a clean record, an international expense won't raise any alarms.
The problem arises when there is general sloppiness. Lack of documentation in multiple areas, signs of disorganisation. Then every detail counts.
Shopping on platforms such as Amazon, eBay or AliExpress
These platforms usually send purchase confirmations by email. Keep everything. If you buy as a company, always try to use the account registered in the company's name, not your personal one. This makes it easier to separate business and personal expenses.
Payments via PayPal, Stripe or other intermediaries
Does the PayPal statement count as proof? Yes, but together with confirmation of the original purchase. PayPal is only the means of payment, it is not a substitute for identifying what you bought.
Expenses in foreign currency
When you pay in dollars, euros or another currency, the amount in Cape Verdean accounts is converted into escudos. The accountant makes this conversion using the exchange rate on the date of the transaction. Also keep your bank statement, which shows the conversion applied by the bank.
Small, recurring expenses
If you subscribe to several small services (5, 10, 20 dollars a month), organise them on a control sheet. List them all, with amounts and dates. This helps the accountant not to miss any and to have an overview of the company's digital expenses.
The best time to sort out your paperwork is before you buy, not after. Before you make that international purchase, stop for a minute and think:
Does this supplier usually issue invoices? If not, what kind of proof will I receive?
Can I ask for something more formal? Is it worth sending an email explaining that I need a document for tax purposes?
Can I register this purchase clearly for the accountant? Will I be able to explain the reason and the connection to the business?
The more organised you are beforehand, the less headache you'll have afterwards. And if you have any doubts, talk to your accountant before you go ahead. Five minutes of conversation can prevent weeks of complications.
There are things that seem like shortcuts but create serious problems.
Running a business in Cape Verde is hard enough. You shouldn't have to waste time figuring out how to justify every international purchase you make.
That's why we exist. We work every day with entrepreneurs facing these issues. We help them organise documentation, interpret what the DNRE requires, prepare tax files and ensure that everything complies with the law.
We offer complete accounting e tax consultancy. From monthly bookkeeping to support with inspections. From clearing up a one-off doubt to managing the tax side of the business in the long term.
Our team knows the Cape Verdean tax system well. We know what the DNRE accepts, how to present documentation, what precautions to take in each type of operation. And we're up to date with changes in the law.
If you have doubts about purchases you've already made, documentation you need to organise or expenses you don't know how to justify, talk to us.
The first contact is free. We'll understand your situation, answer your questions and propose practical solutions. No complications, no unnecessary technical language.
You can call, email or make an appointment. We are based in the city of Mindelo and serve companies from all the islands. We also work with the diaspora who invest here and need local support.
Your company's accounts deserve to be in order. Your international purchases deserve to be correctly justified. And you deserve not to lose any sleep over it.
S&D Consultancy, Lda
Accounting and Business Consultancy in Cape Verde
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