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Cape Verde VAT on digital services

Non-residents VAT obligations for electronic services

The island archipelago of Cape Verde imposed Value Added Tax on foreign providers of digital services to its consumers in January 2022.

The obligation only applies to non-resident providers identified by the Ministry of Finance in a regularly updated listing of e-commerce operators.

There is no VAT registration threshold, but there is a simplified registration process. There is also no opportunity to reclaim input VAT.  Cape Verde e-invoicing is now required of non-residents.

The current VAT rate in Cape Verde is 15%.

What digital services are liable to Cape Verde VAT?

Income from the following services are subject to VAT:

  • Apps
  • E-books
  • Intermediary services between sellers and buyers on marketplace platforms, including advertising and listing fees
  • Download or streaming media
  • Online storage and data processing
  • Domain name services

Follow VAT Calc’s global VAT and GST on digital services tracker for live updates on worldwide reforms.

VAT registration and compliance

Once VAT registered, returns should be completed on a quarterly basis. Filings are due by the 20th of the following month, along with any VAT due. The return is simplified, but there is an opportunity to reclaim any local input VAT.

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Israel 17% TBC Proposals withdrawn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% Apr 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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