Overview
The Republic of Congo introduced VAT obligations on digital/electronically supplied services (ESS) rendered by non-resident suppliers through successive amendments to the Code Général des Impôts (CGI) – Tome 1, most notably via the Loi de Finances for 2020 (which introduced a territoriality rule for digital services) and further clarified by the Loi de Finances for 2022 and 2023, which reinforced the obligation for non-resident digital operators (including online platforms and marketplaces) to collect and remit VAT on services consumed in Congo.
The rules are administered by the Direction Générale des Impôts et des Domaines (DGID) under the Ministry of Finance, Budget and Public Portfolio.
Key provisions applicable to VAT on ESS
| Particulars | Description |
| Scope | VAT applies to all services used or exploited in Congo, regardless of where the supplier is established. For B2B, transactions a reverse-charge mechanism generally applies where the Congolese customer is VAT-registered; for B2C transactions, the non-resident supplier is liable to register and remit VAT. |
| Liability to remit VAT |
|
| VAT rate | The standard VAT rate is 18% with a 5% surcharge which brings the effective rate to 18.9%. |
| Taxable value | The gross amount invoiced to the Congolese consumer, exclusive of VAT itself but inclusive of all ancillary charges, commissions, subscription fees, and any levies. Amounts invoiced in foreign currency must be converted to CFA Franc (XAF) at the Bank of Central African States (BEAC) reference rate on the date of the transaction. |
| VAT registration threshold | Congo applies a general VAT threshold of XAF 100,000,000 (approx. USD 165,000) of annual turnover for resident taxpayers. However, for non-resident digital suppliers, there is effectively no threshold, liability arises from the first taxable supply to a Congolese consumer. |
| Tax invoice | Yes. Non-resident suppliers must issue a compliant tax invoice for each taxable supply. Electronic invoices are accepted, provided that they meet the content requirements of the CGI. |
Services in scope
Electronically supplied services taxable in Congo include (non-exhaustive), but are not limited to:
- Supply of digital content: streaming of music, films, videos, e-books, and online newspapers/magazines
- Software (SaaS), applications, mobile apps, and updates delivered electronically
- Cloud computing, hosting, and data storage services
- Online advertising, search engine services, and digital marketing
- Online gaming, gambling and betting platforms
- E-learning, online courses, and webinars delivered automatically
- Online marketplaces and intermediation/platform services (ride-hailing, accommodation booking, and e-commerce facilitation)
- Subscription-based digital services
- The sale/licensing of digital images, databases, and electronic publications
- The place of supply is where the customer is established, resident, or habitually located in Congo
Registration and compliance
- Registration: Non-resident suppliers must register with the DGID and obtain a Numéro d'Identification Unique (NIU). In practice, a simplified registration regime is available for foreign digital operators, though the DGID may require the appointment of a fiscal representative established in Congo.
- Filing frequency: VAT returns are filed monthly and are due by the 20th of the month following the taxable period.
- Payment: VAT is payable at the same time as filing, in XAF, through a bank accredited by the Treasury or, where available, by electronic transfer.
- Record-keeping: Accounting records and supporting documents must be retained for 10 years.
Invoicing
- Invoices must contain all mandatory information required under the CGI, such as the supplier's identity and NIU, the customer's identity, date, sequential invoice number, description of the service, unit price, VAT rate, VAT amount, and total inclusive of tax.
- Invoices must be denominated in XAF (CFA Franc); if issued in foreign currency, the XAF equivalent and exchange rate used must be shown.
- Invoices should be issued in French, Congo's official language.
VAT on costs
Non-resident suppliers generally cannot recover input VAT incurred in Congo through the ordinary VAT return, because they are registered under a simplified/collection-only regime and do not carry out a taxable establishment-based activity.
A refund/recovery is only possible where the non-resident has a permanent establishment in Congo, registers under the normal regime, and meets the deduction conditions.
Other considerations
Non-resident suppliers of electronically supplied services to customers in the Republic of Congo may be required to appoint an accredited, solvent and VAT-registered representative resident in Congo, who is jointly and severally liable for the payment of VAT due.
To ease compliance, the Agence de Régulation des Postes et Communications Electroniques (ARPCE) has been mandated to support the tax authorities by operating a simplified, centralised registration system that allows non-resident providers of digital services to register and remit VAT in Congo through a single online platform.
VAT on cryptocurrency/digital assets
Currently, The Republic of Congo does not have specific VAT rules or regulations relating to cryptocurrency-related activities or digital assets.
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