- Senegal is updating its VAT framework to include digital services as part of its digital economy transformation
- The country has adopted OECD VAT/GST guidelines and the BEPS Action 1 report to tax digital services based on the destination principle
- VAT on digital services in Senegal applies regardless of the supplier’s location and targets services consumed within the country
- Senegal implemented a new order on May 21, 2024, making VAT on digital services effective from July 1, 2024
- Digital services are taxable in Senegal if consumed locally, with VAT collection duties assigned to intermediaries or foreign providers
- If intermediaries or providers do not collect VAT, local legal entities registered for VAT in Senegal must pay it
- Foreign digital service providers can register for VAT remotely without needing to be tax residents
- VAT reporting for digital services is done quarterly through an online portal
- Foreign providers must include specific details on invoices and keep electronic records for audit purposes
- Non-compliance with VAT regulations can lead to penalties and restrictions under Senegal’s General Tax Code
- The new VAT regime aims to ensure tax equity and simplify compliance for foreign entities in the digital market
Source: lexology.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
