Decrease from 18% 1 January 2024
The 2024 budget has cut the standard Value Added Tax rate from 18% to 17.5% from 1 January 2024.
The reduced VAT rates remain unchanged:
- 9% rate on local products: sugar, oil, soap, textiles and iron and handicraft and fishing materials
- 0% rate applies to exports and related international transportation, aircraft groomers with Jet A1 for planes to foreign countries, products and by-products of the local food industry excluding alcohol.
Chad Value Added Tax (VAT) Regime
The Chad VAT regime is governed by national tax laws and aligned with the Economic and Monetary Community of Central Africa (CEMAC) regulations. The standard VAT rate in Chad is 18%, applied to most goods and services, including imports. However, certain essential products and services may be subject to reduced rates or exemptions.
Taxable Persons and Registration
Businesses with an annual turnover exceeding a specified threshold must register for VAT with Chad’s tax authorities. Registered entities must charge VAT on taxable supplies and file periodic returns. Small businesses below the threshold may be exempt but cannot claim VAT credits.
Filing and Payment Obligations
VAT returns are generally filed monthly. Businesses must report VAT collected from customers and deduct any VAT paid on eligible business expenses (input tax). The net VAT amount is then remitted to the government. Late filing or non-compliance leads to penalties and interest charges.
Exemptions and Special Provisions
Certain goods, such as basic food items, healthcare, and education services, may be VAT-exempt. Additionally, exports are zero-rated, allowing businesses to claim refunds on input VAT related to exported goods. The tax authorities enforce strict compliance measures to prevent tax evasion.
