Togo VAT on non-resident digital services

Togo has joined the expanding group of jurisdictions taxing the digital economy, with new rules bringing non-resident digital service providers into scope of VAT. The framework is anchored in the 2026 Finance Law (Law No. 2025-002), effective from 1 January 2026, and operationalised through Ministerial Order No. 031/MFB/CAB/UPF, signed and effective on 19 February 2026.

This is a clear shift from traditional, locally anchored VAT systems to a destination-based model targeting consumption within Togo.

A digital platform-led collection model

The regime places primary compliance responsibility on digital intermediaries. Platforms facilitating supplies of electronic services must now collect and remit VAT on behalf of underlying foreign suppliers. This aligns with the increasingly dominant “deemed supplier” or platform liability model seen across Africa and globally.

In addition, platforms are required to report annual income generated by users. Non-compliance carries a penalty of 10 percent of undeclared transaction values, signalling a strong enforcement stance from the outset.

Scope of VAT on digital services

The rules apply to foreign entities supplying electronic services to customers in Togo, with taxation triggered based on the customer’s location. This reflects standard international practice and mirrors OECD consumption principles, although further guidance will determine how closely Togo aligns in practice.

The standard VAT rate of 18% applies.

Alongside this, Togo is introducing mandatory certified e-invoicing for VAT-registered businesses. While details of the clearance or reporting model remain limited, the inclusion of e-invoicing suggests a broader digital compliance architecture is being built in parallel with the digital services regime.

Infrastructure still evolving

Critically, the IT infrastructure required to support registration, reporting, and enforcement appears to still be under development. This creates a familiar gap between legal obligation and operational readiness, particularly for non-resident suppliers and platforms seeking clarity on registration thresholds, filing processes, and data formats.

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.

Africa & Middle East VAT on digital services