Senegal Senegal

Goods

Vat standard rate

The VAT standard rate in Senegal is 18%.

 

Reduced rate

The 10% rate applies to tourist services provided by institutions with the necessary accreditation.

 

The Lovat VAT compliance platform

 

Vat zero rate

In particular, zero-rated operations include:

  • direct export;
  • services for ships.

 

Threshold

Non-resident companies selling goods remotely to individuals or businesses located in Sinegal are not required to register as VAT payers. However, if they carry out taxable transactions in Senegal, for example, store goods in Sinegal, registration is mandatory. This business must register before starting its activity or within 20 days after opening.

 

Deductible VAT

Nonresident companies are not allowed to deduct incoming Sinegaliese VAT.

 

Registration procedure 

The application for registration can be submitted in paper form or online. A request for registration as a VAT payer is submitted to the head of the local tax department, along with the necessary supporting documents. The request is then processed and the applicant is subsequently notified of the decision to assign a VAT number.

 

Tax representative

Non-resident companies that are required to register as VAT payers must appoint a local tax representative. In turn, he or she must have the necessary accreditation and also be a VAT payer. And then the representative is fully responsible for the payment and other actions related to VAT.

 

Keeping records

The retention period for all VAT accounting records, including invoices, accounting books, VAT declarations, and payment confirmations, is 10 years. They must be available to the tax authorities upon request.

 

Filling VAT return and payment date

VAT returns must be filed and paid by the 15th day of the month following the reporting period. Reporting in Senegal is monthly and quarterly, depending on the size of the company’s turnover.

 

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Services

VAT standard rate

The VAT standard rate in Senegal is 18%.

 

Reduced VAT rate

10% is a reduced VAT rate in Senegal. The reduced rate is only applicable to hotel and catering services provided by approved establishments.

 

The Lovat VAT compliance platform

 

Exempted services

Services relating to health, education, banking, and insurance/reinsurance / co-insurance which are subject to specific taxation. Direct exports of goods are also exempt from VAT when the exporter delivers goods outside the Senegalese territory.

 

Threshold

According to the new legislation adopted in early 2023, non-resident digital service providers must register as VAT payers as soon as possible after the start of their operations. VAT registration threshold in Sinegal is zero.

 

Deductible VAT

Non-resident companies are not entitled to credit VAT on incoming invoices.

 

Pieces of evidence

The place of supply of services is Senegal, provided that the services provided are directly related to the territory of Senegal.

 

E-services list

The list of digital services includes the following:

  • Online sales;
  • Digital platforms;
  • Marketplaces.

And other types of services that are automated and provided through a digital network.

 

Registration procedure

Non-resident companies must register as VAT payers no later than 20 days after the start of their activities in Senegal. The application must be submitted in paper form directly to the head of the local tax authority.

 

Tax representative

Foreign companies are required to appoint a local tax representative to handle all VAT matters. In turn, the representative must be accredited and be a Senegalese VAT payer. And he or she is fully responsible for the company’s activities.

 

Keeping records

All necessary supporting documents for VAT, including accounting books, invoices, VAT declarations, etc., must be kept for 10 years and provided to the tax authorities upon request.

 

Filling VAT return and payment date

VAT returns must be filed and paid by the 15th day of the month following the reporting period, which is divided into monthly and quarterly periods, depending on the company’s turnover.

 

Need help with VAT compliance?