In fact, the Minister of Finance and Budget has just issued a third decree, no. 010698 MFB/DGID of June 27, 2024, repealing it just one month later. While some inconsistencies and non-conformities have been corrected, others still persist.
- Adjustment of the periodicity for determining the tax base
The decree of May 21, 2024 provided for a base determined on a fortnightly basis, in particular for transactions invoiced in foreign currency, whereas the declaration is made quarterly.
This inconsistency was corrected by the order of June 27, 2024, which states in article 3: «non-resident online suppliers and foreign digital platforms are required, for the determination of the quarterly declarable taxable base, to convert the value of their sale [...]».
- Extending the use of the average rate to local taxpayers
In addition to non-resident online suppliers and foreign digital platforms, which are required to convert the value of their monthly sales on the basis of the exchange rate applicable on the last day of the month concerned, as published by the Central Bank of West African States (BCEAO), for the purposes of determining the quarterly taxable base, the Order of June 27, 2024 adds a third paragraph to Article 3, which extends the use of the average rate to local taxable persons when calculating the monthly tax deductible from their VAT taxable sales.
- Persistent points of legal non-compliance
- Declaration deadline
The VAT declaration schedule is maintained within the first twenty (20) days following each quarter, in violation of the provisions of item 4 of article 363, which provides for a quarterly declaration no later than the fifteenth (15th) of the months of January, April, July and October.
In our opinion, it would have been wiser to reproduce the text of article 363 of the CGI or simply to refer to the provisions of said article.
- Non-compliance with the principle of VAT deduction
Paragraph 3 of article 3 of the June 27, 2024 order allows local taxable persons to deduct input VAT on digital services from their monthly returns.
However, this provision is contrary to the principle laid down in article 374.2 of the CGI, which stipulates that «the right to deduct arises at the time when the deductible tax becomes payable by the supplier».
