Overview
Currently, Liberia still operates the Goods and Service Tax (“GST”) and there is no explicit provision on electronically supplied services (“ESS”).
However, in May 2024, a new VAT Act was approved to amend Part III chapter 10 of the Revenue Code 2000 to provide for Value Added Tax (“VAT”), thereby replacing the Goods and Services Tax (GST). This transition is expected to begin in July 2026, with full effective implementation from January 2027. This new VAT law has provision on ESS.
The expected VAT Act introduces provisions for remote services or electronically ordered goods, including those supplied through electronic distribution platforms. In line with the VAT Act, where an underlying supplier provides remote services or electronically ordered goods via an electronic distribution platform operated outside Liberia without a place of business in Liberia, and the place of supply is Liberia, the operator of the platform is deemed to have made the supply for VAT purposes. The place of supply is Liberia if:
- The supply involves the goods being delivered in Liberia
- The supply is made through an electronic distribution platform
- The operator of the platform either:
- delivers the goods in Liberia; or
- procures, arranges, or facilitates the delivery of the goods in Liberia.
The Act generally defines “electronic services” to include services provided via internet, automatically, using information technologies, as well as services provided through phones, tablets, television, and other digital services. The VAT Regulations also provides a non-exhaustive list of electronic services.
Key provisions applicable to VAT on ESS
| Particulars | Description |
| Scope | Non-residents supplying electronic services to natural persons (“B2C”) or legal persons (“B2B’’) |
| Liability to remit VAT | Non-resident supplier of ESS and in where the supply is B2B, then the customer will be required to self-account for VAT under the reverse charge mechanism |
| VAT rate | 15% |
| Taxable value | The value of a supply shall be the consideration for the supply. |
| Effective date | 1 January 2027 |
| VAT registration threshold | S$20,000 |
| Tax invoice | The non-resident supplier may issue electronic invoices. |
Services in scope
A non-exhaustive list of electronic services is given below:
- Supply of electronic copies, granting access to images, texts, and information providing access to databases.
- Supply of electronic copies and/or the provision of access to audiovisual works, video and audio on demand, games, including supply of services on participation in such games, supply of services for access to television programs (channels) or their packages, except for access to television programs simultaneously with their broadcasting through the television network.
- Access granted to information, commercial, entertainment electronic resources, and other similar resources.
- Supply of distance learning services via the Internet, which conducting and providing does not require human participation (with certain exceptions).
- Supply of cloud services in relation to the provision of computing, storage resources, or electronic communications systems using cloud computing technologies.
- Supply of software and updates to it, including electronic copies, provision of access to them, as well as remote maintenance of software and electronic equipment.
- Provision of advertising services on the Internet, mobile apps, and other electronic resources, providing advertising space.
Registration and compliance
A non-resident without a permanent establishment providing ESS is required to register if the total value of supplies is equal to or exceeds USD 20,000 annually. This registration is required by March 31 of the year following the year in which the threshold was reached.
To ensure compliance, the Liberia Revenue Authority (“LRA”) may require a non-resident who meets the above threshold to lodge a security with the LRA. If the non-resident fails to comply, the person may be required to appoint an agent who will be responsible for all compliance requirements in Liberia including accounting for VAT on behalf of the non-resident. If a non-resident has registered a permanent establishment (PE) or has a place of business in Liberia, this may not apply.
Invoicing
The VAT Act and Regulations provide the invoicing requirement as follows:
- A taxable person may issue electronic invoices.
- Electronic invoices should contain all the data required in a paper tax invoice (Refer to Appendix 1 below for a sample of a tax invoice). Please note that invoices must be raised in either US Dollars (USD) or Liberian Dollars (LRD).
- Tax invoices sent via fax or email should consider all the data and information required in tax invoices. These invoices shall be considered valid documents to preserve the taxable person’s right to request inputs value added tax deductions. The data sent by fax shall be copied on normal paper that does not decompose over time.
VAT on costs
A non-resident is not entitled to claim an input tax credit.
VAT on cryptocurrency/digital assets
Currently, Liberia does not have specific VAT rules or regulations relating to cryptocurrency-related activities or digital assets.
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