2024 VAT on non-resident providers of B2C and B2B electronic services
The Central African country of Democratic Republic of Congo has imposed Value Added Tax on foreign providers of digital services to consumers since 1 January 2024. This was included within the Finance Act 2024.
This came into effect from 1 January 2024.
Congo requires providers of B2B digital services to charge VAT as well as B2C.
There is no VAT registration threshold. There is a simplified registration and reporting service, provided via a portal. Non-residents using this can avoid the normal requirement on foreign businesses to appoint a fiscal representative.
VAT Calc’s global VAT and GST on digital services tracker to see which other countries have introduced indirect taxes on electronic services to consumers.
What digital services liable to Congolese VAT?
Under the Act, “electronic service” means a service provided or delivered on or through the internet, electronic or digital network, which includes the following:
- Software licensing and downloads
- Social media
- Database services
- Deliveries
- Accommodation sharing
- Online telecoms services
- E-learning
- Streaming and download media
- Mobile apps
- Digital intermediaries
- E-books and newspapers
- SaaS and cloud-based software
- Hosting and other internet services
- Online advertising
- User data
- Membership to dating memberships
- Online gaming
- Search engine services
Marketplace liabilities
It would not just be the responsibility of the provider, but potentially also any intermediary or marketplace selling the service of an underlying supplier.
Africa & Middle East VAT on digital services
| Comments (click for details) | Rate | Date | Threshold | Comments |
| Algeria | 9% | Jan 2020 | Nil | |
| Angola | 14% | Oct 2019 | – | |
| Bahrain | 10% | Jan 2019 | Nil | |
| Benin | 18% | Oct 2023 | TBC | |
| Botswana | 14% | 2024 | - | Pending implementation |
| Cameroon | 19.5% | Jan 2020 | XAF 50 million | |
| Cape Verde | 15% | Jan 2022 | Nil | |
| Congo, Democratic Republic | 16% | Jan 2024 | - | |
| Egypt | 14% | Sep 2016 | EGP 500,000 | |
| Ethiopia | 15% | Aug 2024 | ETB 2 million | |
| Ghana | 12.5% | Apr 2022 | GHS 200,000 | |
| Guinea | 18% | Jan 2016 | Nil | |
| Israel | 17% | TBC | – | Proposals withdrawn |
| Ivory Coast | 18% | 2022 | - | |
| Jordan | 16% | JOD 30,000 | ||
| Kenya | 16% | Sep 2013 | - | Registration threshold removed 2023 |
| Kuwait | 5% | Jan 2024? | - | TBC |
| Madagascar | 20% | Nil | Collections via fiscal rep | |
| Mauritius | 15% | 2020 | ||
| Morocco | 20% | 2024 | ||
| Mozambique | 16% | 2017 | Nil | |
| Nigeria | 7.5% | Jan 2020 | $25,000 | |
| Oman | 5% | Apr 2021 | OMR 35,000 | |
| Rwanda | 18% | TBC | ||
| Saudi Arabia | 15% | Jan 2018 | Nil | |
| Senegal | 18% | Jul 2024 | Nil | Fiscal representative required |
| Sierra Leone | 15% | Jan 2021 | SLE 100,000 | No non-resident rules |
| South Africa | 15% | Jun 2014 | ZAR 1 million | |
| Tanzania | 18% | Jul 2022 | Nil | Residents since Jul 2015 |
| Tunisia | 19% | Jan 2020 | Nil | Withholding VAT; 3% Royalty Tax |
| Uganda | 18% | Jan 2020 | UGX 150m | |
| United Arab Emirates | 5% | Jan 2018 | AED 375,000 | |
| Zambia | 16% | Jan 2024 | Fiscal Representative req'd | |
| Zanzibar | 15% | Aug 2024 | Nil | |
| Zimbabwe | 14.5% | Jan 2020 | Nil |
