- The rationalization of various tax exemptions that began in 2021 with the removal of exemptions from VAT and taxes on industrial and commercial profits (BIC) that did not comply with the Ivory Coast’s commitments, or whose impact was limited, is continued with some exceptions
- It is provided that where expenses are claimed for services performed by undertakings belonging to the same group, withholding tax shall be payable after a period of two years to address issues where withholding has not been performed because payment for the service has not actually been made or recorded in a current account;
- To address a similar issue as above in regard to VAT on behalf of third parties, the same requirement to pay VAT withholding after a period of two years is provided;
- In order to address the difficulties in effectively collecting VAT on transactions involving online sales of goods and services, amendments are introduced:
- to expressly specify the territoriality rules applicable to VAT on online sales, digital services, and commissions received by digital intermediation platforms in connection with such transactions;
- to provide for a simplified procedure for remote tax registration, as well as a simplified procedure for the declaration and remote payment of VAT payable, for operators of online sales platforms or digital services, that do not have a professional presence in the Ivory Coast; and
- to provide for a specific regime of sanctions for operators of digital platforms not established in the Ivory Coast, including the suspension of access to their platform, in the event of non-compliance with the obligation to register for tax or to pay VAT on their taxable transactions in the Ivory Coast;
- The special tax on certain plastic products is extended to all plastic packaging placed on the market by importers and local producers, and the rate of tax is set at 50 CFA francs per kilogram of plastic packaging;
Source Orbitax
