Fiscal representatives register and report VAT on behalf of foreign providers
Madagascar imposed its Value Added Tax on digital or electronic services (and goods) sales to consumers by foreign providers via local fiscal representatives. Where a non-resident provider B2B or B2B digital services, it is not required to register directly with the Revenue Authority. Instead, they are obliged to appoint a local representative who is directly liable for collections and remittances.
The current VAT rate in Madagascar is 20%. VAT Calc’s global VAT and GST on digital services blog tracks indirect taxes on digital and e-services.
The reverse charge for B2B transactions generally may be applied
What digital services are liable to Madagascan VAT?
Income from electronic or digital services is not specifically defined, but can be considered as covering:
- Advertising
- Software licences (eg cloud or SaaS)
- Data storage and processing
- Platform operator commissions
- Telecoms and related services (texts etc)
- Broadcasting
- Streaming or download media
- Hosting
- Gaming
- Automated distance learning
VAT registration and compliance
There is no VAT registration threshold for electronic services provision. The agent must collect and remit VAT on the first sale. Settlements must be made from local bank accounts. Invoices, paper or electronic, are required. Returns are monthly, and payment is due by the 15th of the following month.
Preparing VAT or GST filings can be challenging. VAT Calc’s single platform VAT Filer can correctly complete any country submission with verified VAT or GST transactional data from our VAT Calculator or VAT Auditor integrated tools.
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 | |
| 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| Israel | 17% | TBC | – | Proposals withdrawn |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 | |
| Zimbabwe | 14.5% | Jan 2020 | Nil |
