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Benin imposes VAT on B2C digital services

18% on non-resident digital services with simplified reporting regime

The West African country of Benin has imposed the obligation for resident and non-resident to charge VAT on digital service to consumers. 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.

The implementation date was 14 April 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% Jan 2023 TBC
Cameroon 19.5% Jan 2020 XAF 50 million
Egypt 14% Sep 2016 EGP 500,000
Ghana 12.5% Apr 2022 GHS 200,000
Israel 17% 2023/24 Proposal in 2023/24 budget
Ivory Coast 18% 2022 -
Kenya 16% Sep 2013 - Registration threshold removed 2023
Kuwait 5% Jan 2023? - TBC
Mauritius 15% 2020
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% Jan 2023 Nil Fiscal representative required
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
Zimbabwe 14.5% Jan 2020 Nil


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