Mali

Scope of VAT

VAT is charged on the supply of goods and services rendered or used in Mali, subject to the exemptions list. All economic activities fall within the scope of VAT, including the activities of independent professionals (lawyers, chartered accountants etc.), except for banking activities for which a specific tax applies.

The tax basis corresponds to the amount of money paid for the provision of goods or services.

In the case of importation, the tax base corresponds to the customs valuation (price of sale of goods plus cost of insurance and transportation, etc. until arrival in Mali), plus any excise duties.

VAT incurred on the acquisition of goods and services wholly attributable to the making of taxable supplies may be claimed as input tax.

Input tax on some goods and services listed by the tax rules is not recoverable.

Circular letter No. 95-017/MFC-SG of 27 November 1995 instituted VAT withholding at source by some structures specifically designated by the Minister of Finance.

Rates applicable

To date, the standard VAT rate is 18%. 

Reduced rate: 5% for some goods provided by the law.

Registration threshold

No specific registration number is required to comply with the VAT rules. 

In Mali, there is a single tax identification number that taxpayers must use to fulfil all their obligations regarding all taxes. However, it is important to note that the persons authorised to invoice VAT must be either natural persons or corporate/commercial entities realising an annual turnover before tax equal to, or more than, XOF50 million (EUR76 224.50).

Businesses with lower turnover do not collect VAT. As such, they are not allowed to deduct VAT borne of their purchases.

Non-residents performing taxable transactions in Mali must appoint a representative domiciled in Mali and accredited by the tax authority to comply with VAT diligences and payment. In case of failure, the VAT and where applicable, the penalties relating thereto, shall be due by the beneficiary of the taxable service.

Where a taxpayer is not domiciled in Mali, he must have a representative domiciled in Mali accredited with a tax department, who undertakes to complete taxpayers’ obligations.