Overview
VAT is due when a non-resident provides goods or services to a resident established in Benin via an electronic platform. VAT is charged by the non-resident regardless of the nature of the beneficiary. (Article 224 of GTC; Tax administration note of 2023).
Release date: April 2024
Key provisions applicable to VAT on ESS |
| Table 1 |
Services in scope |
VAT applies on:
|
Registration and compliance |
| Non-resident suppliers are required to register locally with the tax authorities. Once registered for VAT, they must complete and submit monthly VAT returns. VAT returns and payments are due by the 10th of every month for the preceding month. |
Invoicing |
| The law does not specify the invoicing method to be adopted. |
VAT on costs |
| Non-resident suppliers registered under the simplified tax registration are precluded from recovering any VAT incurred on costs in Benin as input tax, i.e. any Benin VAT incurred by the non-resident suppliers is an absolute cost. |
Other considerations |
| A withholding tax of 20% applies to all remuneration for ESS provided or used in Benin paid to foreign electronic service suppliers located in a country with no double tax agreement with Benin. |
Particulars |
Description |
Scope |
Both B2B and B2C |
Liability to remit VAT |
Non-resident supplier and local company beneficiary of the service that is subject to VAT |
VAT rate |
18% |
Taxable value |
The price payable by the recipient of the supply |
Effective date |
14 April 2023 (However, the tax authorities have not yet implemented the payment software.) |
VAT registration threshold |
Companies or individuals with a turnover that exceeds XOF100,000,000 |
Tax invoice |
Yes |
