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Benin imposes VAT on B2C digital services Oct 2023

18% on non-resident digital services with simplified reporting regime from 13 October 2023

The West African country of Benin has imposed the obligation for resident and non-resident to charge VAT on digital service to consumers from 1 October 2023. It is joining over 100 countries with VAT on digital services.

This applies to B2C transactions. For B2B, the reverse charge should be used, meaning non-resident do not need to charge VAT and may avoid registration is no B2C sales.

In April 2023, a published circular implementing value added tax (VAT) on cross-border provision of digital services was published. The circular provides that covered nonresidents are required to comply with the rules within six months from publication of the circular – 13th October 2023

Which services liable to Benin VAT?

The following services are included within the scope of VAT:

  • Software
  • Website hosting
  • E-learning (where no human intervention)

Providers may use any of the following pieces of evidence to determine if the VAT is due in Benin:

  • Payment details;
  • IP address; or
  • Other similar information

The Director General of Tax is offering a simplified registration portal for non-residents where offering digital services via electronic platforms and intermediaries – resident or non-resident.

There is no requirement to issue invoices.

Whilst resident taxpayers are required to complete monthly returns, non-resident are able to file quarterly. Generally, for non-resident VAT registered businesses, a local agent or fiscal representative is required.  VAT may be settled in the local currency, dollars, euro’s or Yuan.

The VAT obligations fall onto resident marketplaces in the case where they facilitate sales for non-resident providers of digital services.

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Israel 17% TBC Proposals withdrawn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


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