28 February 2024
During the 2023 Finance Act, the Ministry of Finance confirmed that from 1 April 2024 it will introduce VAT on the sale of digital services by non-resident providers to local consumers.
Currently, foreign businesses providing digital services to consumers in the country do not have to charge VAT on their sales. However, to remove the unfair advantage this gives to non-resident companies over resident providers, the Senegalese government will introduce VAT at 18% on these types of transactions from April.
Non-resident providers will have to VAT register in the country via a local Fiscal Representative from the first sale that they make as there is no VAT registration threshold.
This new tax will apply to a range of electronic services including advertising, streaming games, music, apps, films, e-books, e-journals, software, and internet services.
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