Ivory Coast VAT on digital services update

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
• Gaming
• 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.

Preparing digital services VAT returns or other global filings is complex, time consuming and fraught with tax liability risks.  VAT Calc’s single platform VAT Filer can accurately complete any country filings with verified transactional data from our VAT Calculator or VAT Auditor integrated tools.

Africa & Middle East VAT on digital services