Non-residents VAT obligations for electronic services
The island archipelago of Cape Verde imposed Value Added Tax on foreign providers of digital services to its consumers in January 2022.
The obligation only applies to non-resident providers identified by the Ministry of Finance in a regularly updated listing of e-commerce operators.
There is no VAT registration threshold, but there is a simplified registration process. There is also no opportunity to reclaim input VAT. Cape Verde e-invoicing is now required of non-residents.
The current VAT rate in Cape Verde is 15%.
What digital services are liable to Cape Verde VAT?
Income from the following services are subject to VAT:
- Apps
- E-books
- Intermediary services between sellers and buyers on marketplace platforms, including advertising and listing fees
- Download or streaming media
- Online storage and data processing
- Domain name services
Follow VAT Calc’s global VAT and GST on digital services tracker for live updates on worldwide reforms.
VAT registration and compliance
Once VAT registered, returns should be completed on a quarterly basis. Filings are due by the 20th of the following month, along with any VAT due. The return is simplified, but there is an opportunity to reclaim any local input VAT.
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| Israel | 17% | TBC | – | Proposals withdrawn |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 |
