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Tunisia VAT on foreign digital services

Mix of VAT, withholding tax and royalty tax can apply

Tunisia imposes a mix of Value Added Tax, Withholding VAT and software 5% royalty (Digital Services Tax) taxes on non-resident sellers or marketplaces providing digital services to consumers. B2C transactions are generally zero-rated, with the Tunisian resident business reporting the transaction for VAT via the reverse charge.

The current VAT rate in Tunisia is 19%.  VAT Calc’s global VAT and GST on digital services blog keeps a live update on how countries are imposing indirect taxes on non-resident providers and electronic marketplaces.

There are no detailed rules on the supply of digital or intangible services to consumers in Tunisia. The general rule is that a supply in the country to a consumer for consumption is subject to VAT. Generally, the sale of software and / or internet supplies services by a non-resident are liable to VAT and royalties.

What Tunisian taxes are due on digital intangibles

Tunisia imposes potentially three models of taxation on non-resident providers of digital services:

  1. Withholding VAT: if the provider is not VAT registered, the customer must withhold the VAT from their payment. The provider should therefore gross up their price to include Tunisian VAT. The consumer should register and pay this Withholding VAT with the Ministry of Finance and obtain a special receipt, ‘discharge certificate’.
  2. VAT Registration: as an alternative to Withholding VAT, the non-resident may choose to VAT register to avoid the inconvenience of having their customer report the Withholding VAT. This does not require a VAT Fiscal Representative. VAT returns are due on a monthly basis. Filings are due by 15th of the following month.
  3. 3% Royalty Tax: which was imposed from 1 January 2020 on all non-resident sales of software and internet-provided services. In effect, a Digital Services Tax. This is in addition to VAT due. Non-residents subject to software Royalty Tax must register, and file quarterly returns to report and pay the tax.

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% Apr 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


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