07.01.2025

Senegal: The specificities of VAT on digital services in Senegal

Senegal's economy is undergoing a digital transformation, necessitating an updated VAT framework for digital services. To regulate the VAT on digital services, Senegal has aligned itself with OECD VAT/GST guidelines and the BEPS Action 1 report. This reform introduces the principle of destination, enabling the taxation of services and intangible goods consumed in Senegal, regardless of the supplier’s location.

To implement this, Senegal adopted Order No. 6775 MFB/DGID on May 21, 2024, replacing the initial framework established in November 2023. VAT on digital services became effective on July 1, 2024, as outlined in the tax authority's communiqué of June 24, 2024. This article outlines the key features of the VAT regime on digital services.

Territorial scope and VAT collection

Digital services are taxable in Senegal if consumed locally or the recipient resides there, determined through billing addresses or IP locations. VAT collection responsibilities fall on intermediaries (e.g., digital platforms) or foreign providers. If neither fulfils this obligation, the transaction recipient becomes liable if it is a legal entity subject to and registered for VAT in Senegal. This diverges from the traditional rule requiring local tax representatives to declare VAT. ›

Simplified registration for foreign suppliers

Foreign digital service providers can register remotely through electronic forms without becoming Senegalese tax residents or incurring liabilities for additional taxes. This approach simplifies compliance for non-residents engaging in Senegal’s digital economy.

Lightened declaration and payment modalities

Unlike traditional VAT, which follows monthly reporting, VAT on digital services is reported quarterly via the tax administration’s online portal by the 15th of January, April, July, and October.

Specific invoicing and record-keeping rules

Registered foreign providers must include their identity, address, and Senegalese taxpayer number (NINEA) on invoices, along with customer details. They are not required to maintain traditional accounting records in French but must keep electronic copies for audit purposes.

Penalties for Non-Compliance

Non-compliance results in penalties under Senegal’s General Tax Code, including potential restrictions on access to digital platforms. These measures aim to ensure tax equity and compliance in cross- border digital trade. In summary, Senegal’s VAT regime for digital services addresses the challenges of taxing cross-border transactions while simplifying compliance for non-resident providers, ensuring equitable tax practices in the digital economy.

If you wish to discuss these topics, please contact:

Face Africa Tax & Legal

Author

El Hadji Sidy Diop

Managing Partner & CEO

Legal Adviser and Chartered Tax Expert

Senegal

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Article published in WTS Africa Quarterly Newsletter #1/2025

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