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:
- 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’.
- 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% 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|
|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|