Côte d’Ivoire launches simplified VAT compliance regime for non-residents
The Directorate General for Taxation for Ivory Coast has introduced a simplified VAT compliance service for foreign providers of digital services on a B2C and B2B basis. VAT in Ivory Coast is 18%.
The West African state imposed Value Added Tax on non-resident providers of digital services to consumers from 4 January 2022. This requires foreign providers of electronic service to register with the Direction Générale Des Impôts, DGI, through a new, simplified registration process.
B2B also liable to VAT collections
Unusually, B2B services are also included within the obligation, and cannot benefit from the reverse charge simplification. VAT invoices are also required, which should include the following details:
- Invoice date
- Business customer name
- VAT number
- Service description
Gross and VAT amounts
Digital services liable to VAT
Income from the following services are liable to VAT:
- Data services
- Search engines
- Cloud services
- DIgital content
- Advertising services
- Social network platforms
Quarterly reporting under simplified non-resident VAT regime
Once registered under the simplified regime, filings and payments are on a quarterly basis. The return and VAT payment is then due by the 15th of the month following the reporting period.
Digital intermediation platform operators facilitating the sales of third party e-services are also now included within the changes via the amending legislation, Tax Annex to the Finance Law for 2022. The new law also enables the DGI to request non-compliant sellers to be blocked on platforms.
The current VAT rate in Ivory Coast is 18%.
Typically, for other Ivory Coast VAT registrations for other taxable supplies, a VAT Fiscal Representative is required.
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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|
|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|
|Sierra Leone||15%||SLE 100,000|
|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|