- New VAT Regulations for Digital Services: In January 2025, Chad’s Ministry of Finance announced that VAT on digital services will now extend to digital platforms and marketplaces, requiring them to collect and remit 17.5% VAT on behalf of third-party sellers.
- Retroactive Implementation: The VAT changes are retroactive to January 1, 2025, aligning with Chad’s efforts to regulate the digital economy, which has included VAT on electronic services since January 2023. Non-resident providers must appoint a local VAT representative to comply.
- Scope of Affected Services: The VAT will apply to various digital services, including streaming, online gaming, and e-commerce transactions, with providers responsible for determining VAT obligations based on customer location, enhancing tax collection efficiency and global compliance.
Source Comarch
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