Senegal levies a value added tax (VAT) on the supply of goods and services in the country, including imports. The standard rate of VAT is 18%. Tourism activities are subject to reduced VAT at a rate of 10%, exports are zero-rated and certain other supplies are exempt.

Exempt Supplies Include:

Education services;
Medical services; and
Agriculture fishery activities.

Banking and insurance services are exempt from VAT, but subject to a special tax of 17% (see Sec. 8.1.2.).

Registration Threshold

There is no registration threshold and entities are required to register before the commencement of taxable supply.

Returns and Payments

Taxpayers are required to file VAT returns and make corresponding tax payments on a monthly basis, if the annual turnover exceeds XOF 100 million. However, the tax period for taxpayers with an annual turnover between XOF 50 million and XOF 100 million is quarterly. The due date for VAT return filing and tax payment is 15 days of the month following the tax period.

Digital Supplies

Effective 1 April 2024, digital supplies by a non-resident to a person in Senegal are subject to VAT at the standard rate of 18%. Digital supplies are defined as the provision of intangible goods and/or services of any nature, carried out in an automated manner on a computer and/or electronic network. Further, digital services include intermediation services supplied by online marketplaces and platforms.

Digital services include:

Digital advertising;
Digital intermediation services;
Downloading/streaming of music, movies, and video games;
Provision of Software as a Service (SaaS) or software on the cloud;
Online provision of articles, newspapers, and information;
Online learning and distance learning;
Website hosting; and
Provision of travel, accommodation, and transportation information.

In determining whether digital services are supplied to persons in Senegal, the following is considered:

The billing address of the customer;
The IP address of the device used by the customer;
Bank details, such as the location of the bank account used for payment, or the billing address of the customer held by that bank; and
The mobile country code of the international mobile subscriber identity (IMSI) that is stored on the subscriber identity module (SIM) card used by the customer.

Non-resident providers of digital services are generally required to register for VAT using a simplified remote registration procedure via the website of the Senegal tax authority, without the need to appoint a tax representative. There is no VAT registration threshold. In the case of supplies to registered persons (i.e., B2B supplies), however, the reverse charge generally applies. It is clarified that registration of a non-resident digital services provider does not create a permanent establishment for income tax purposes.

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