- Growth of E-Commerce in Africa: The rapid expansion of the e-commerce sector across Africa has prompted many countries, including Burkina Faso, to mandate the introduction of a VAT regime for foreign providers of digital services and goods, addressing the increasing digital economy.
- Legislative Changes for VAT Compliance: Recognizing the inadequacies of the current VAT framework for foreign digital providers, the Government of Burkina Faso has adopted the draft Finance Bill for 2025, effective January 1, 2025. This new legislation aims to create transparent and practical rules for non-resident suppliers and platform operators to facilitate VAT registration and compliance.
- Amendments to the General Tax Code: The Finance Bill amends Article 299 of the General Tax Code to impose VAT on sales and services provided by foreign entities within Burkina Faso, including commissions from digital marketplaces. This move aims to enhance government control over the growing e-commerce sector and ensure that the state collects due VAT, thereby addressing previous challenges related to transparency and infrastructure for foreign providers.
Source 1stopvat
