Gabon

Rates and scope

Three VAT rates apply in the Gabonese Republic, namely:

• standard rate of 18%, applicable to all transactions unless otherwise provided for

• reduced rate of 10%, applicable to the production, manufacturing and selling of the following products:

  • Cement 

  • Fishing equipment 

  • Outboard motors  

  • Automotive spare parts  

  • Automotive axles

  • Construction tiles 

  • Nails 

  • Impermeables 

  • Imported meat and poultry 

  • Imported table oils 

  • Sugar 

  • Imported arachid.

• Reduced rate of 5%, applicable to production and sales operations of the following products: 

  • mineral water produced in Gabon

  • Lessive 

  • Concrete iron  

  • Office computers and laptops  

  • Canned pulses and green vegetables 

  • Canned fruit 

  • Supply of water and electricity on consumption of social and conventional metres. 

• Zero rate, applicable to exports, international transport, operations relating to refuelling as well as operations relating to maintenance and reparation carried out on aircrafts and vessels used for international traffic. The zero rate applies only to exports for which declarations have been issued by the customs authorities.

VAT is a broadly-based tax on consumer expenditure. It is mostly removed from business costs, thereby confining it to consumer expenditure, by providing taxable persons with a credit mechanism — the deduction.

All transactions relating to an economic activity that constitutes an import, a delivery of goods or the provision of services carried out in the Gabonese territory by a person subject to tax (a chargeable person), except for the transactions expressly exempted from VAT under the Gabonese tax code, are taxable operations.

VAT registration

Compulsory registration

Registration is compulsory insofar as operations are carried out in Gabon. Provision is made for two categories of taxable persons who are VAT chargeable:

• any person carrying on economic activities in Gabon with an annual turnover of at least (in Central African CFA Franc) XAF 60m (USD 100,349)

• forestry exploiters with a turnover of at least XAF 500m (USD 836,245)

• taxpayers whose turnover falls below the above thresholds will remain subject to VAT for a period of two years. After, their liability would be subject to an option on their part.

Voluntary registration

Non-residents

Companies that are not incorporated in Gabon are not entitled to deduct VAT.

Foreign companies with no permanent establishment in Gabon who permanently or occasionally perform operations falling within the VAT scope are liable for VAT whatever the amount of the operations is.

As a consequence, for foreign VAT-able persons, the VAT must be paid by the client on behalf of such persons without a permanent establishment in Gabon.

Application for registration

Until the VAT administration has granted a VAT number (NIF) to a company, the company is not allowed to deduct VAT.

The taxpayer must request the NIF at the tax administration for its jurisdiction. This request is made at the beginning of the activity if the taxpayer considers that its activity will reach the liability threshold mentioned above, or within a month following the date on which the taxpayer satisfies the liability conditions or upon meeting these conditions once the activities have already been carried out.

Deregistration

The transfer or discontinuance of business in its entirety or partially must be declared to the tax authorities within 30 days:

• in case of the transfer or sale of a business, following the day on which the sale or transfer would have been published

• in case of the sale or transfer of other enterprises, following the day when the transferor or buyer would have effectively started managing the operations

• in case of discontinuance of business, following the day on which it was finally closed down.

Calculation of output tax

The calculation of output tax depends on the VAT rate. Where the standard rate applies, the output tax is determined as follows :

• 18% x price (all taxes included except the special solidarity contribution [SSC] and the VAT itself) = VAT.

The taxable amount consists of all the sums, values or services received in compensation for the operation, including subsidies and all expenses, taxes and deductions of any nature other than the SSC and the VAT itself. The prices are always given inclusive of all taxes.

Exempt supplies 

Exempt operations include, but are not limited to :

• agricultural, farming and fishing goods

  • peanuts 

  • coffee

  • cocoa

  • pork meat

  • beef meat 

  • sheep meat

  • all other meat for consumption

  • chicken

  • duck and other poultry

  • fresh fish

  • frozen fish

  • plantain banana

  • sweet banana 

  • yam 

  • tarot 

  • potatoes 

  • various fruits and vegetables.

• The following operations, when they are subject to specific taxes exclusive of any tax on turnover:

  • Operations performed by insurance companies in the context of their activity linked to insurance and reinsurance contracts, as well as services rendered by insurance middlemen.

  • Interest on external loans.

  • Interest remunerating deposits with credit or financial establishments by non-professionals.

  • Operations for the transmission of real estate and intangible movable goods liable to registration duties.

  • Operations relating to civil leases of undeveloped land and bare premises.

• Operations related to international traffic concerning:

  • The handling operations on board of products intended for export

  • Ships or boats used for industrial or commercial activities on the high seas

  • Rescue and assistance vessels 

  • The maintenance of aircraft and ships and bunkering operations

  • Interstate transit operations and related services, in accordance with the provisions of Article 158 and following the Customs Tariff of the Central African Economic and Monetary Community

• Printing, import and sale of school books, newspapers and reviews, except for profits from advertising

• Scholarship fees collected in the normal course of activities by authorised schools or universities

• Operations to which fiscal stamps apply

• Sums paid by the state to the Central Bank

• Welfare, educational, competitive, cultural, religious or philanthropic supplies made by non-profit institutions to their members, unless they operate in a competitive sector

• Benefits related to the legal practice of the medical profession with the exception of accommodation and food expenses in a clinic or hospital or medical care facility

• First-necessity products:

  • Liquid milk 

  • Powdered milk 

  • Concentrated milk 

  • Unconcentrated milk 

  • Sweetened milk 

  • Unsweetened milk 

  • Margarine 

  • Butter 

  • Yogurt 

  • Notebooks and textbooks 

  • Bread 

  • Flour 

  • Yeast 

  • Gluten

  • Eggs 

  • Rice 

  • Medicine  

  • Pharmaceutical products 

  • Canned sardines 

  • Canned tomatoes 

  • Canned mackerel 

  • Food paste 

  • Local table oils 

  • Salt 

• Importation of goods exempted under the provisions of Article 241 of the Customs Code and Tariff of the Central African Economic and Monetary Community, supplemented by Act 2/92-UDEAC.556.SEI

• Sales of used goods made by persons who have used them for the needs of their operation 

• Sales of butane gas 

• The services rendered by economic interest groups made up of natural or legal persons carrying out an activity that is exempt from VAT or for which they are not taxable persons, are exempt from the tax on condition that they contribute directly or exclusively to the realisation of these exempted operations or operations excluded from the scope of application of the VAT and that the sums claimed from the members correspond exactly to their share in the common expenses 

Loans on real properties to the amount of less than XAF 50m (USD 83,624.5), granted to individuals for the acquisition and construction of a residence in Gabon.

Input tax

Input tax allowed

Input tax incurred to perform taxable operations is deductible from output tax collected. The right to a deduction arises when the tax point occurs. To meet the formal deduction conditions, VAT has to be mentioned on one of the following documents :

• invoices delivered by legally authorised suppliers (having a NIF for local suppliers)

• documents of importation

• a declaration completed by the debtor in the event of self-supply.

Specific exclusions of input tax deduction

VAT incurred is denied as an input tax deduction in the following instances :

• entertainment, accommodation and catering, except where a company’s taxable activity consists of these operations

• importation of goods that are re-exported without any modification

• petroleum products, except for those used by a fixed device as combustible or as a manufacturing element in industrial companies

• goods given for free or at a price less than their value, except those whose value does not exceed XAF 10,000 (USD 16.12)

• goods and services purchased by the taxpayer but used by third parties or by its managers or employees

• services related to goods excluded from the right to deduction

• services available in the national territory, executed by foreign suppliers.

• vehicles used (mainly or partially) for the transport of passengers, that constitute fixed assets, along with their rental, spare parts or related services except in the following cases:

  • vehicles used for both the transport of passengers and products

  • vehicles with more than ten seats exclusively used for the transport of personnel 

  • fixed assets of car rental companies

  • fixed assets of public transport companies

  • travel expenses of tourism staff for their customers

  • vehicle stock of car dealerships and test or demonstration vehicles.

Limited deduction right

Taxable persons who do not carry out only taxable operations (allowing them full right of deduction) may deduct the VAT incurred on the acquisition of goods and services by applying a deduction prorate. This fraction is the relationship between :

• as numerator — turnover related to operations subject to VAT

• as denominator — total turnover performed by the taxable person.

Table 1

Adjustments

International trade

Imports

The taxable basis of importation is determined by adding the amount of the customs duties and the excise duties to the value of the goods as defined for customs purposes. However, the fact that imported goods are re-forwarded does not as such result in a right to deduction.

VAT on imports is paid to the customs authorities. It must be declared and paid before the removal of the goods.

Imports of new materials and tools for the construction of social residences by authorised property developers are VAT exempt.

Foreign suppliers of services in Gabon who have no permanent establishment are liable to VAT. The Gabonese client will submit a VAT return and pay the VAT to the Treasury. The Gabonese company that benefits from the services may deduct such VAT from VAT collected the next month, except if the services provided by the foreign supplier are available in the Gabonese territory, in which case it will not be deductible.

Exports

The zero rate is applicable to international exports and transport, including the supply of goods on board vessels and aircrafts used for international traffic. It applies only to exports that have been subjected to customs declarations. The exporters must attach the customs references for exports carried out during the month to their monthly declarations.

By way of exception, taxable exporters may request a refund of their tax credit, limited to the VAT fictitiously calculated by applying the general rate to the amount of exports carried out during the period.

Supplies of services are subject to Gabonese VAT when the recipient uses or enjoys the services in Gabon.

There are no specific provisions in relation to refunds to foreigners.

Place, time and value of supply

Place of supply

A supply of goods is subject to VAT if the delivery occurs in Gabon. A supply of services is subject to VAT if the rendered services are used or enjoyed in Gabon.

Therefore, all transactions relating to an economic activity that constitutes an import, a delivery of goods or the provision of services carried out within the Gabonese territory are subject to VAT.

Time of supply

Value of supply

VAT compliance

Returns and payment of VAT

By the 20th of each month, any taxable person has to calculate whether they have a tax debit or a tax credit and declare their monthly taxable operations on a CA01 return to be submitted to the tax administration. Should no operation take place during a month, a nil VAT return must nonetheless be submitted.

The VAT filing and payment obligation remains until the company obtains a tax clearance after it has initiated the deregistration process.

Interest and penalties

The late submission of the monthly declaration is subject to late-payment interest of 5% before the receipt of a formal notice to declare and 10% if the declaration is submitted within the seven days following the receipt of a formal notice to declare.

If the late declaration does not indicate any VAT due, the penalty is XAF 100,000 (USD 161.20) before the receipt of a formal notice to declare and XAF 200,000 (USD 322,40) per month of delay if the declaration is submitted after the receipt of a formal notice to declare, with a ceiling of XAF 2m (USD 3,224.05).

The late payment of the VAT mentioned in the monthly declaration is penalised by late-payment interest of 10% for the first month of delay, and 3% for the following months.

Any omission noted by the tax authority in the monthly declaration and noticed to the taxpayer is subject to a penalty of 1.5% per month of delay, up to a maximum of 50% of the evaded rights or reassessments carried out, subject to the good faith of the taxable person. This penalty can be increased by 50% if bad faith is established.

Failure to submit a VAT declaration will result in automatic taxation and the loss of the right to deduct the VAT as well as the loss of any existing tax credit relating to previous periods.

The fact that non-compliance does not result in a loss to the state or in a benefit to the taxpayer will not result in a waiver of interest charged.

Refunds

Objections and appeals

Time limits

Omissions and errors in respect of VAT payable by the taxpayer can be corrected by the tax administration until the expiry of the fourth year following the year during which the tax became due.

Omitted former deductions can be claimed until the 12th month following the month in which the deduction right occurred.

VAT records

Tax invoices

Any invoice issued in Gabon or sent to Gabonese clients must be written in French, issued in XAF currency, and indicate the following:

• the name and address of the supplier

• the name and address of the beneficiary

• the date

• a description of the services or goods and their quantity

• the unit price, excluding VAT and discounts

• the vat numbers (NIF) of the beneficiary and the supplier (if any)

• the applicable VAT rate.

Any person liable for VAT must indicate on the invoice their NIF number, statistic number and trade registration number as well as the applicable rate and the amount of VAT. Invoices delivered to non-taxable persons can mention a single tax-inclusive amount.

The absence of indication of the NIF of the two parts of an operation on an invoice leads to the non-deduction of the VAT mentioned on this invoice.

Additional export documentation

Record-keeping

Specific VAT rules

Petroleum activities

While petroleum activities (prospecting and production) were initially considered to fall outside the scope of VAT, they are now governed by regimes which derive from the provisions of production sharing contracts (PSCs) or concession agreements.

As for contracts signed after the entry into force of the law regulating the hydrocarbons sector in Gabon, the VAT regime provided for under that law will apply.

In accordance with the law, all goods acquired by exploration and production companies from foreign suppliers which are intended for hydrocarbon activities are exempt from VAT on importation.

Acquisitions by E&P companies of goods or services provided locally are subject to the payment of VAT. However, acquisitions and services provided by oil suppliers or subcontractors who are mentioned in the list established by the Gabonese administration are subject to VAT at 0%.

VAT paid by E&P companies may be refunded.

Bad debts

In order to recover output tax for unpaid transactions where the amount is irrecoverable, a correction of the invoice is necessary. A duplicate of the initial invoice containing the following statement should be issued:

• ‘Invoice remains unpaid for the sum of X price excluding VAT and for the sum of corresponding VAT, which cannot be the subject of a deduction.’

Land and buildings

The transfer of real goods and intangible movable property subject to registration rights is not subject to VAT. 

Please note that the Finance Act for fiscal year 2016 provides new provisions relating to VAT on property.

VAT on property is charged in relation to operations involving the production or delivery of buildings performed by taxpayers as part of their business activities (i.e. the sale of building plots, deliveries of new buildings, and deliveries to oneself of certain buildings).

The applicable rate of VAT on property is the standard rate of 18%.

The tax is due by the contractor of the building from the delivery date of the said buildings.

The deeds relating to the sale of the buildings must be registered, giving rise to the payment of registration duties.

Leasing

Promotional gifts

Secondhand goods

Tourism industry

Transfer of a business

Other indirect taxes

Import duty

Gabon is a member of the Central African Economic and Monetary Community (CEMAC) region, which means that consideration must be given to the CEMAC regulations. There is a common customs regime, as well as specific customs regimes.

A common CEMAC customs regulation stipulates that the customs value of imported merchandise is their transactional value, i.e. the price actually paid or to be paid for this merchandise, subject to some adjustment and/or reintegration.

Specific customs regimes:

• the temporary admission regime (normal or special) may be granted for specific equipment materials, products, machines and tools required for the performance of some operations

• a specific regime is granted for imports by the contractor, third parties on its behalf or subcontractors, provided that the goods are re-exported after they have been used

• the exemption regime may be granted for all materials, products, equipment, machines and tools exclusively intended and actually used up for certain operations such as drilling equipment and oxygen

• the reduced-rate regime of 5% may be granted for materials, products, equipment, machines and tools which do not fall into the above-mentioned categories and are necessary for petroleum production.

Excise duty

Table 2

Registration duties

These are proportional rights which range from 1% up to 8%, depending on the nature of the acts:

• The transfer of shares is normally subject to the payment of a registration right of 3% of the price, as a burden to the assignee.

• The sale of a building is subject to a registration right of 6% (plus 2% for buildings located in Libreville, Akanda, Owendoor Port-Gentil).

• The transfer of a leasing right is subject to a registration right of 4%.

Stamp duty