Skip links

Madagascar VAT on non-resident digital services

Fiscal representatives register and report VAT on behalf of foreign providers

Madagascar imposed its Value Added Tax on digital or electronic services (and goods) sales to consumers by foreign providers via local fiscal representatives.   Where a non-resident provider B2B or B2B digital services, it is not required to register directly with the Revenue Authority. Instead, they are obliged to appoint a local representative who is directly liable for collections and remittances.

The current VAT rate in Madagascar is 20%.  VAT Calc’s global VAT and GST on digital services blog tracks indirect taxes on digital and e-services.

The reverse charge for B2B transactions generally may be applied

What digital services are liable to Madagascan VAT?

Income from electronic or digital services is not specifically defined, but can be considered as covering:

  • Advertising
  • Software licences (eg cloud or SaaS)
  • Data storage and processing
  • Platform operator commissions
  • Telecoms and related services (texts etc)
  • Broadcasting
  • Streaming or download media
  • Hosting
  • Gaming
  • Automated distance learning

VAT registration and compliance

There is no VAT registration threshold for electronic services provision. The agent must collect and remit VAT on the first sale. Settlements must be made from local bank accounts. Invoices, paper or electronic, are required. Returns are monthly, and payment is due by the 15th of the following month.

Preparing VAT or GST filings can be challenging.  VAT Calc’s single platform VAT Filer can correctly complete any country submission with verified VAT or GST transactional data from our VAT Calculator or VAT Auditor integrated tools.

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Israel 17% TBC Proposals withdrawn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% Jul 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


Get our latest news right in your mailbox