Benin confirms VAT obligations for foreign digital service providers

31 May 2023

The West African country of Benin has imposed VAT at 18% on the sale of electronic services by non-resident suppliers to consumers in the country.

This new tax was introduced to remove the unfair advantage that not charging turnover tax gave to non-resident companies over resident providers in the country. It also requires non-resident suppliers to register from the first sale made in the country as there is currently no registration threshold applicable.

This tax will apply to a range of electronic services, including website hosting, streaming games, music, apps, films, e-books, e-journals, software, and e-learning.