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:
- 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|
|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|
|Kenya||16%||Sep 2013||-||Registration threshold removed 2023|
|Oman||5%||Apr 2021||OMR 35,000|
|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|