Sierra Leone

Overview

Sierra Leone introduced a Goods and Services Tax (GST) on digital services in the 2021 year of assessment. The Finance Act 2021 amended the Goods and Services Tax Act of 2009 to include digital market supply and digital services as taxable supplies in Sierra Leone.

Subsequently, the Finance Act 2023 amended the initial provision to provide for a broader scope of digital services, which are listed below.

The law does not specify that GST applies to electronically supplied services (ESS) supplied by non-residents. However, non-resident suppliers of these services may be required to register and charge GST on ESS to consumers in Sierra Leone.

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Key provisions applicable to VAT on ESS
Services in scope
Registration and compliance
Invoicing
VAT on costs
Other considerations

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Release date: April 2024

Key provisions applicable to VAT on ESS

Table 1

Services in scope

Digital market supply or digital services through a digital marketplace refers to e-platforms, whether e-medium, e-commerce, peer-to-peer (P2P), advertising based, agency or subscription-based, that include:

Downloadable digital content
Subscription-based media
Software programs
Electronic data management
Supply of music, film, and games electronically, including satellite TV
Online sale of goods and any online or digital gambling and betting activities
Search engines and automated help desk services, online tickets, e-learning platforms, audio, vision or digital media, and transport hailing platforms, among others

Registration and compliance

There is no specific requirement for non-residents to register if they supply the services directly to customers in Sierra Leone. However, if the services are provided through an agent in Sierra Leone, the agent must register and account for the GST.

Invoicing

In Sierra Leone, all taxable persons are generally required to issue invoices using the electronic cash register (ECR) system.

VAT on costs

The law does not specify if non-resident suppliers can deduct input GST incurred in Sierra Leone. General rules may apply.

Other considerations

Non-residents who derive income from digital services and products from consumers in Sierra Leone are required to pay income tax on the profits accruing to them for a year of assessment.

Particulars	Description
Scope	B2C and B2B (through reverse charge mechanism)
Liability to remit VAT	Non-resident supplier, agent or importer of the service
VAT rate	15%
Taxable value	The value of the supply
Effective date	1 January 2021
VAT registration threshold	General threshold of SLE500,000
Tax invoice	No requirement has been specified in the law to issue a tax invoice for ESS by non-residents. General rules may apply.

Download publication (pdf - 4.20mb) VAT in Africa Digital Services

This report is a special edition of our annual VAT Guide in Africa, focusing on new rules and measures that have been introduced to tax the digital economy unilaterally by countries in Africa.

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