Cameroon levies a value-added tax (VAT) on the supply of most goods and services in the country, including imports. The standard rate of VAT is 17.5%. An additional council surcharge of 10% applies resulting in an effective rate of 19.25%. Certain supplies are exempt, whilst exports and transactions carried out in free zones are zero-rated.

Exempt Supplies Include:

Educational institutions and university fees;
Medical services;
Life assurance and health insurance;
Interest on foreign loans and on deposits with credit and financial institutions;
Transfer of real estate and business assets subject to transfer duty;
Mining products;
Pharmaceutical products, including materials and manufacturing equipment;
Goods and equipment used to fight AIDS;
Agricultural and fishing equipment;
Fertilizers, pesticides, and other agricultural, livestock, and fisheries inputs;
Effective 1 January 2023, the direct sale of any product resulting from agricultural activities or fishing;
Solar and wind energy equipment and materials;
Newspapers and periodicals;
Imports of goods exempt under the Economic and Monetary Community of Central Africa (CEMAC) customs code; and
Contracts and commission on life insurance products with savings component (effective 1 January 2020).

It is clarified that taxability of services depends on whether the services are tangibly or intangibly supplied in Cameroon.

Services that can be tangibly located in Cameroon are taxable in Cameroon irrespective of the place of establishment or residence of the customer, including, in particular:

Means of transport rental;
Provision of services related to buildings;
Port services carried out in the port area as well as on national territorial waters;
Intra-Community carriage of movable tangible goods by road or rail;
Services incidental to the intra-Community carriage of movable tangible goods;
Cultural, artistic, sport, scientific, education, and recreational services, accommodation, and sales for consumption on the spot;
Work and valuation of movable tangible goods; and
Services of intermediaries acting in the name and on behalf of others.

Intangible services are taxable at the place of establishment or residence of the customer, including, in particular:

Transfers and concessions of copyright, patents, licenses, trademark, and other similar rights;
Rentals of movable tangible property other than means of transport;
Advertising services;
Services of consultants, engineers, and firms in all fields, including those of the organization of research and development;
Services of chartered accounts;
Data processing and information supply;
Banking, financial, and insurance or reinsurance operations, with the exception of safe deposit box rentals;
Staff placement;
Services of intermediaries who act in the name and on behalf of third parties in the provision of the services described above;
Telecommunication services;
Radio and television broadcasting services;
Services provided by electronic means; and
Access to, and supply through, electricity or natural gas transmission and distribution networks and all other directly related services.

Digital Supplies

Effective 1 January 2020, VAT applies on the following transactions:

Sale of goods and services in Cameroon or through foreign or local e-commerce platforms; and
Commissions received by e-commerce platform operators for carrying out the transactions.

Registration Threshold

The registration threshold for VAT in Cameroon is an annual turnover of XAF 50 million before tax. Companies with a turnover lower than the threshold are generally not allowed to register for VAT.

Returns and Payments

Taxpayers are required to file VAT returns and make tax payments on a monthly basis by the 15^th day of the following month.

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