A recent report indicates that African nations are updating their tax systems to capture revenue from the growing digital economy. Out of Africa’s 54 countries, 21 have implemented rules requiring non-resident suppliers to account for Value Added Tax (VAT) or Goods and Sales Tax (GST) on electronically supplied services (ESS), with five more countries expected to join soon. Some countries have introduced a Digital Services Tax (DST) to target revenues from specific digital activities and transactions, reflecting a broader initiative to benefit from digital services that cross traditional borders. The report highlights the diversity in digital tax approaches across Africa, emphasizing the importance for businesses to adapt and stay informed about evolving tax landscapes. For example, in Kenya, VAT regulations for digital marketplace supplies have undergone significant amendments, requiring non-resident suppliers of taxable digital services to register for VAT and apply a standard rate of 16% on transactions. As Africa continues to integrate digital transactions into its economy, adapting tax laws to this digital transformation remains a priority for both tax authorities and businesses operating across the continent.
Source Taxually
