More
    HomeGovernance, Policy & Regulations ForumSenegal to Implement 18% Tax on Foreign Digital Services from July 1st

    Senegal to Implement 18% Tax on Foreign Digital Services from July 1st

    Published on

    spot_img

    The Directorate General of Taxes and Domains (DGID) has announced that the value-added tax (VAT) on digital services provided in Senegal by foreign online suppliers and platforms will be implemented from July 1st, 2024.

    This move is in line with the provisions of Article 355 bis of the General Tax Code (CGI). Foreign entities registered with the Large Enterprises Directorate are required to collect and remit the VAT due on sales of intangible goods and services to local customers by the 20th of the month following each calendar quarter.

    If a foreign digital company is not properly registered, the local taxpayer is obligated to withhold and pay the VAT due in accordance with Article 355 of the CGI.

    The DGID has informed that VAT declaration and payment formalities can be carried out via the “Etax” online platform. Foreign online suppliers and operators of foreign digital platforms can register in Senegal and receive their login and password remotely via the following link: https://eservices.dgid.sn/fimfipnet.

    This development marks a significant step in Senegal ’s efforts to regulate and tax the digital economy, aligning with global trends in taxation of digital services.

    As Senegal prepares to implement its VAT on foreign digital services, it joins a growing list of African nations embracing the digital tax regime. Countries like Nigeria, Kenya, South Africa, Zimbabwe, and Tunisia have already taken steps to tax digital transactions, signaling a continent-wide trend towards regulating and benefiting from the digital economy.

    While the specifics of these tax regimes vary across countries, the overarching goal remains the same: to ensure that digital companies contribute their fair share to the economies where they operate. As more African countries join this movement, it’s clear that the digital tax landscape on the continent is evolving rapidly.

    Latest articles

    Egypt’s Top Fintech VC, DisrupTech Ventures, Enters the Blockchain Space

    This deal marks a pivotal moment for DisrupTech Ventures, as it indicates a willingness to diversify its portfolio beyond traditional fintech.

    Egypt Eases Small Deal Rules, But Big Investor Concerns Won’t Go Away

    This change effectively acknowledges that smaller transactions, previously subject to the same level of scrutiny as larger ones, were overburdening both regulators and investors.

    South Africa’s Insight Terra Raises $5.7 million to scale climate-tech platform

    The funding round highlights the growing investor confidence in African climate-tech solutions

    Enko Education Secures $24M to Triple Its Student Reach Across Africa by 2029

    The $24 million investment will fund Enko Education’s large-scale acquisition strategy aimed at consolidating Africa’s fragmented K-12 education market.

    More like this

    Egypt’s Top Fintech VC, DisrupTech Ventures, Enters the Blockchain Space

    This deal marks a pivotal moment for DisrupTech Ventures, as it indicates a willingness to diversify its portfolio beyond traditional fintech.

    Egypt Eases Small Deal Rules, But Big Investor Concerns Won’t Go Away

    This change effectively acknowledges that smaller transactions, previously subject to the same level of scrutiny as larger ones, were overburdening both regulators and investors.

    South Africa’s Insight Terra Raises $5.7 million to scale climate-tech platform

    The funding round highlights the growing investor confidence in African climate-tech solutions