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

    Bridgement Lands $20.3m as South Africa’s Banks Double Down on AI Lending

    South African fintech secures backing from two of the country's largest lenders to tackle a chronic funding gap for small businesses.

    Handymesh Is Building the Digital rails for Africa’s Multibillion-Dollar Artisan Market

    Handymesh founders deploy AI, escrow and verifiable work histories to bring structure to Africa’s vast informal home services sector

    Koko Networks Puts Ethanol Platform on the Block in $15m Asset Sale

    The sale is being targeted at corporate and institutional participants with demonstrated financial capacity to conclude a transaction exceeding $15m.

    Coca-Cola Joins Egypt’s High-Value Tech Offshoring Wave

    The newly launched Coca-Cola HBC Digital Hub will serve as a centralized digital delivery platform supporting the company’s operations across 27 markets in Europe and Africa.

    More like this

    Bridgement Lands $20.3m as South Africa’s Banks Double Down on AI Lending

    South African fintech secures backing from two of the country's largest lenders to tackle a chronic funding gap for small businesses.

    Handymesh Is Building the Digital rails for Africa’s Multibillion-Dollar Artisan Market

    Handymesh founders deploy AI, escrow and verifiable work histories to bring structure to Africa’s vast informal home services sector

    Koko Networks Puts Ethanol Platform on the Block in $15m Asset Sale

    The sale is being targeted at corporate and institutional participants with demonstrated financial capacity to conclude a transaction exceeding $15m.