2023 Finance Act establishes B2C 18% liabilities; reverse charge for B2B transactions
The annual Finance Act has confirmed the obligations for registration of non-resident providers of digital services to consumer to VAT register. B2B supplies by foreign providers are now the responsibility of the Senegalese taxpayer, who should use the reverse charge mechanism to self-account for the VAT.
This also applies to marketplace and platforms under Article 31 of the Finance Act, which makes the intermediary liable for the VAT collections.
The VAT rate in Senegal is currently 18%.
Digital services are defined as the supply of intangible goods or services carried out in an automated manner on a computer and/or electronic network. Intermediaries are those involved in online sales digital platforms, marketplaces or online marketplaces that bring together suppliers and marketplaces which bring together suppliers and their customers to enable them to conclude transactions using information technology.
A non-resident providing such taxable services must appoint a fiscal representative to register for VAT, and they are fully liable for the provider’s VAT obligations. There is no VAT registration threshold.
Preparing Senegalese or any global VAT or GST returns is complicated, time consuming and high 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
|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|