Chad VAT on digital services update

Expansion of VAT to digital services and e-commerce

Removing ambiguity around the VAT treatment of cross-border digital supplies.

• The definition of taxable economic activities is expressly extended to include digital services and electronic commerce transactions.
• All operations carried out through e-commerce platforms are now subject to VAT, regardless of whether the platform or supplier is established in Chad or abroad.

New VAT collection obligations for digital platforms

Aligning Chad with the global trend of platform-based VAT collection models:

• Both resident and non-resident digital platforms facilitating sales of goods or services in Chad must now collect, declare, and remit VAT on behalf of underlying suppliers.
• Previously, this obligation applied only to non-resident platforms, creating uneven treatment.

Clarification of “digital services”

Bringing in streaming, downloads, online subscriptions, software, and similar automated services to the VAT net:

• Digital services are defined broadly as the supply of goods and/or intangible services of any kind, performed automatically over a computer or electronic network.

Foreign digital service providers

VAT registration by foreign suppliers or platform operators is clarified as not constituting a permanent establishment for other tax purposes, limiting exposure to corporate income tax:

• Providers of digital services established abroad, using their own technology, are explicitly required to collect and remit VAT on online sales to customers in Chad.

Intermediaries and commissions VAT obligations

• The law confirms that intermediaries subject to VAT on commissions include digital platforms, marketplaces, and online trading hubs that connect suppliers and customers via information technology.

Jan 2025 platforms retrospectively responsible for VAT

Chad’s Minister of Finance and Budget has presented the 2025 which extends the existing VAT on digital services obligation to facilitating digital platforms. This will apply retrospectively from 1 January 2025.

Any platform or marketplace will have to collect 17.5% VAT on behalf of their third party electronic service sellers (goods, too), and remit to

January 2023 VAT on e-services

Chad imposed VAT on electronic services from 1 January 2023. This includes domestic and non-resident providers.  Non-resident must appoint a local VAT representative or fiscal representative who is liable to the provider’s VAT.

Non-residents may reclaim local input VAT if incurred.

Check our global VAT and GST on digital services tracker to see which other countries have introduced indirect taxes on electronic services to consumers.

VAT Calc’s VAT Filer can accurately populate Chad or other country VAT return with verified data from our VAT Calculator or VAT Auditor services

Determining if Chad VAT is due

Any provider or liable intermediary must establish if the place of consumption is Chad, and VAT therefore due. They may reply on the following:

• Customer billing address
• Customer incorporated in Chad
• Chad IP address
• Any other similar evidence

Digital services subject to Chad VAT