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Since the implementation of Law No. 2022-22 of December 19, 2022, on the Finance Law for the year 2023, Senegal has introduced a value added tax (VAT) applicable to digital services. The tax, set at 18%, came into effect on July 1, 2024 in accordance with the provisions of Decree No. 034269 of November 8, 2023 adopted for its application.

Scope of application and services involved

VAT on digital services in Senegal applies to foreign service providers and platforms when their services are used or consumed by customers in Senegal.

It applies to digital services provided automatically via a computer or electronic network. This includes online advertising services, digital intermediation and marketplaces, the provision of software as a service (SaaS) or cloud solutions, website hosting and data management as well as the downloading or streaming of digital content such as music, games or videos.

Foreign digital platforms are involved when they connect suppliers and customers to enable online transactions, distribute a supplier’s products or facilitate sales by multiple parties on their interface. A platform is considered foreign when it is operated by a party not residing in Senegal.

Obligations of foreign service providers and intermediaries

In accordance with Article 355 bis of the Senegalese General Tax Code, foreign suppliers with their own technology must collect and pay VAT on services provided in Senegal. Intermediaries such as marketplaces or e-commerce platforms are also required to collect and pay VAT on behalf of suppliers for transactions carried out of Senegalese territory. The tax applies to the price of digital services and, where applicable, to commissions received by intermediaries.

Registration and declaration procedures

Foreign service providers can easily register remotely via the online portal of the Directorate General of Taxes and Domains (DGID) (https://eservices.dgid.sn/fimfipnet). This simple process allows them to obtain a NINEA number, as well as a username and password, which are essential for declaring and paying VAT.

Once registered, service providers can submit all their declarations via the Etax platform (https://csfe4.dgid.sn), entering their turnover in Senegal and the amount of VAT collected. Payment is then made by bank transfer to the General Treasurer, to the account specially opened at the Central Bank Of West African States (BCEAO) on behalf of the Senegalese Treasury.

It should be noted that if the foreign supplier is not registered, the Senegalese company receiving the service becomes responsible for collecting and remitting the VAT.

Penalties and control

Failure to comply with VAT obligations on digital services exposes foreign service providers and platforms to tax penalties under the Senegalese General Tax Code. In addition to financial penalties, the tax authorities may suspend access to online platforms, marketplaces or marketplaces operating in Senegal.

These measures aim to ensure compliance by foreign operators and secure the country’s tax revenues. The application of penalties is coordinated with the relevant departments of the Ministry of Telecommunications and other relevant bodies.

To enhance transparency and facilitate monitoring, the General Directorate of Taxes and Domains may publish a list of providers and platforms that are up to date with their tax obligations.

This reform illustrates Senegal’s adaptation to the realities of global e-commerce ensuring that digital services provided by foreign operators contribute to national tax revenues. It clarifies the role of platforms and intermediaries in VAT collection, while simplifying procedures through a fully electronic registration and reporting process.