VAT in Africa

Navigating Africa's VAT landscape

Explore the application of VAT in 35 countries in Africa in our 2020 Africa VAT Guide, available now.

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7.5%

VAT is charged at a standard rate on the supply of VATable goods and services.

0%

VAT is charged at 0% on non-oil exports, goods and services purchased by diplomats and goods purchased for use in humanitarian donor funded projects.

10%

Failure to remit: Per annum of the amount of tax not remitted plus interest.

5% - 35%

Import duties are payable upon importation prior to or at the port of entry, applied on various goods at rates ranging between 5% - 35%.

West Africa Region

The interpretation of Value-Added Tax (VAT) legislation in Africa often creates uncertainty for businesses trading in and across Africa. African countries understand the importance of having a tax base, VAT making up a large portion of revenues collected. Not being VAT compliant may lead to penalties and additional tax.

Although it may take time to fully understand the VAT environment across Africa, consider that VAT legislation is seldom if ever tested in tax courts across Africa. VAT legislation would have been effective since date of the implementation of the VAT legislation.

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Key findings

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Rates and scope

Standard VAT rates for each country on all the taxable supplies.

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VAT compliance

How compliance in VAT is treated in each country.

Specific VAT rules icon

Specific VAT rules

Taking a look at some of the VAT rules in line with debts, land and buildings, leasing and other factors.

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Other indirect taxes

Some countries have other indirect taxes charged on goods.

 

Years of talks have yielded the African Continental Free Trade Area Agreement (AfCFTA) which was ratified on 30 May 2019. AfCFTA is expected to change the future of African trade from historical ties with Europe, the Americas and Asia to African trade with itself. Africa is resolute in its desire to tackle the long-standing challenges of tariff and non-tariff barriers that have inhibited the movement of goods, services, capital and people within the continent.

Job Kabochi, Africa Indirect Tax Leader
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PwC GlobalVATOnline

PwC GlobalVATOnline is an online subscription service. It provides up-to-date business critical information on VAT/GST rates, rules and requirements around the world to help you maintain control, mitigate risk and improve the overall effectiveness of your VAT/GST function.

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