July 2024: B2C 18% liabilities; reverse charge for B2B transactions
Following the 2023 Finance Act, the Ministry of Finance has confirmed the obligations for registration of non-resident providers of digital services to consumer to VAT register from 1 July 2024 (originally April 2024). B2B supplies by foreign providers are now the responsibility of the Senegalese taxpayer, who should use the reverse charge mechanism to self-account for the VAT.
This also applies to marketplace and platforms under Article 31 of the Finance Act, which makes the intermediary liable for the VAT collections.
The VAT rate in Senegal is currently 18%.
Digital services are defined as the supply of intangible goods or services carried out in an automated manner on a computer and/or electronic network. Intermediaries are those involved in online sales digital platforms, marketplaces or online marketplaces that bring together suppliers and marketplaces which bring together suppliers and their customers to enable them to conclude transactions using information technology.
Determining the place of supply
Non-resident providers will have to determine if the consumption of the digital service is in Senegal. They may rely on the following pieces of evidence:
- Address of consumer
- IP address
- Bank account address
- Phone or mobile country code
Digital services liable to VAT
Fees from services within the scope of VAT include:
- Streaming and downloaded media
- Online journals and news
- Advertising
- E-learning
- Software, hosting and cloud hosting
- Gaming and similar subscription services
- Data provision and storage
A non-resident providing such taxable services must appoint a fiscal representative to register for VAT, and they are fully liable for the provider’s VAT obligations. There is no VAT registration threshold.
Preparing Senegalese or any global VAT or GST returns is complicated, time consuming and high with tax liability risks. VAT Calc’s single platform VAT Filer can accurately complete any country filings with verified 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 | |
| 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 |
