- The Director-General of Taxes issued Circular No. 232 on 18 February 2025, updating VAT exemption conditions for foreign NGOs in Benin.
- The new circular replaces Circular No. 1994 from 16 October 2024.
- VAT exemption for NGOs now requires prior authorisation for VAT-free sales or VAT credit retrocession.
- Authorisation is issued by the DGI within five working days.
- The threshold for prior authorisation increased from F.CFA500,000 to F.CFA5 million.
- The authorisation procedure does not apply to food purchases.
- NGOs not subject to prior authorisation must request a tax clearance certificate and standardised invoice from suppliers.
- NGOs must use non-cash payment methods that identify them as the payee.
- Prior authorisation is required for duty-free hydrocarbon purchases, regardless of amount.
- The tax administration can check duty-free purchases and make corrections as needed.
Source: ensafrica.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.
