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.
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:
|
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. |
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