Mauritania VAT on digital services overhaul

2027 Finance Bill proposes B2B reverse charge, quarterly VAT returns for foreign digital suppliers and new customer location rules

Mauritania’s 2027 Finance Bill proposes new VAT collection rules for non-resident suppliers, building on the August 2026 legislation extending 16% VAT to foreign digital services.

The reforms distinguish between B2B reverse charge, foreign supplier VAT registration and customer withholding obligations. They also clarify how the place of taxation is determined for cross-border digital services.

B2B reverse charge for non-resident services

Mauritanian businesses subject to the standard VAT regime would be required to self-assess VAT on taxable services purchased from non-established suppliers.

Under the proposed mechanism:

• The Mauritanian customer accounts for VAT rather than the foreign supplier.
• VAT becomes due upon payment, partial payment or recognition in the customer’s accounts, and no later than the end of the month following invoice issuance.
• Reverse-charged VAT must be reported separately in monthly VAT returns.
• Input VAT may be recovered under the normal deduction rules, provided the tax is correctly declared.

The Finance Bill would also remove the existing VAT exclusion for certain non-resident services subject to withholding tax under Article 132 of the General Tax Code.

Foreign digital suppliers – VAT registration and quarterly returns

Non-resident digital service providers and platforms supplying customers outside the reverse-charge and VAT withholding mechanisms would be required to register electronically for Mauritanian VAT.

The proposed requirements include:

• Online VAT registration.
• Quarterly VAT returns and payments.
• Filing and payment by the 20th day of the month following each quarter.

These obligations would principally affect foreign suppliers selling digital services directly to consumers, but could also cover other recipients outside the reverse-charge and withholding arrangements.

Which digital services are subject to 16% VAT?

Mauritania extended VAT to foreign digital services through its 2026 Amending Finance Law, enacted on 10 August 2026.

The legislation covers a broad range of electronically supplied services, including:

• Cloud computing, hosting and data storage.
• Software-as-a-Service (SaaS) and online software.
• Online advertising and digital marketing.
• Video, audio and multimedia streaming.
• Digital marketplaces and platform commissions.
• Artificial intelligence applications and automated services.
• Other services delivered electronically.

The standard VAT rate is 16%.

Determining customer location

The 2027 Finance Bill proposes clearer rules for establishing whether digital services are consumed in Mauritania.

For non-taxable customers, suppliers would need at least two non-contradictory indicators of Mauritanian consumption, including:

• Billing address.
• Payment instrument details.
• IP address.
• Telephone number.

For taxable business customers, the place of use would be determined by reference to their establishment.

VAT withholding and other recipients

Public bodies and other designated withholding agents would generally be required to withhold the full VAT amount on taxable supplies from non-residents, unless the reverse charge applies. The withholding would discharge the supplier’s VAT liability for the transaction, without an input VAT deduction for the recipient under this mechanism.

Other recipients purchasing services for professional, associative or non-profit purposes could be required to declare and pay VAT separately by the 15th day of the following month, without entitlement to input VAT deduction.

The proposals are contained in the 2027 Finance Bill, published by the Mauritanian Ministry of Finance on 28 October 2026, and remain subject to parliamentary approval.

Africa continues to expand digital VAT

Mauritania’s reforms follow a wider trend across Africa as governments modernise VAT systems to capture growing digital trade. Numerous countries have already introduced similar rules requiring foreign suppliers of digital services to register and account for local VAT.

Africa & Middle East VAT on digital services