Overview
Sierra Leone introduced the Goods and Services Tax (GST) on digital services from 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.
Thereafter, the Finance Act 2023 amended the initial provision to provide for a broader scope of digital services, which are listed below.
Furthermore, with effect from 1 January 2026, as per the Finance Act 2026, non-resident suppliers of digital services must register for GST, irrespective of whether these supplies exceed the standard registration threshold or whether the non-resident supplier maintains a physical presence in Sierra Leone.
In addition, non-resident suppliers of digital services to consumers in Sierra Leone without a physical presence or registered office in the country are required to formally appoint a representative in Sierra Leone who has a physical presence or registered office.
Key provisions applicable to VAT on ESS
| Particulars | Description |
| Scope | B2C and B2B |
| Liability to remit VAT | Non-resident supplier, agent or importer of service |
| VAT rate | 15% |
| Taxable value | The value of the supply |
| Effective date | 1 January 2021 |
| GST registration threshold | Nil with effect from 1 January 2026. Prior to this date, the registration threshold was SLE 500,000 (circa USD 21,000) |
| Tax invoice | Non-resident suppliers are required to issue invoices using the electronic cash register (ECR) system. |
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, films and games electronically, including satellite TVs
- 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, transport hailing platforms, among others
Registration and compliance
With effect from 1 January 2021, non-resident suppliers of digital services were required to register for GST in Sierra Leone subject to meeting the GST registration threshold of SLE 500,000 (circa USD 21,000).
However, from 1 January 2026, this GST registration threshold was removed. As such, all non-resident suppliers must register for GST, irrespective of whether their supplies exceed the standard registration threshold or whether the non-resident supplier maintains a physical presence in Sierra Leone.
Invoicing
In Sierra Leone, all taxable persons including non-resident suppliers are generally required to issue invoices using the electronic cash register (ECR) system.
GST on costs
Input tax deductions are not allowed for expenses incurred in the provision of digital services by a person who does not have a physical presence or registered office in Sierra Leone.
Other considerations
Non-residents who derive income from digital services and products from consumers in Sierra Leone are required to pay income tax (1.5% of turnover) on all the income derived from a source in Sierra Leone.
GST on cryptocurrency/digital assets
Currently, Sierra Leone does not have specific VAT rules or regulations relating to cryptocurrency-related activities or digital assets.
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