The Value Added Tax (VAT) in brief

What is VAT?

• It is a tax on consumption which is levied at each stage of expenditure/production;
• It is an indirect tax because it is not paid directly to the Treasury by the consumer (real debtor), but by those who are in charge of its collection (legally liable);
• It is a real tax because it does not take into account the personality of the consumer, but the transactions involved.

Who is liable to VAT?

These are natural persons or entities, including local authorities and bodies governed by public law which carry out taxable transactions falling within the scope of the VAT.

What are taxable operations?

• Production;
• Provision of service;
• Distribution;
• Imports;
• Exports;
• Real estate works.

What is the VAT rate?

The VAT rate is 19.25%, repartitioned as follows:

17.5% in principal and 10% (of the principal) for the additional council surtax.

However, export transactions are taxed at a zero-rate.

What are the declarative obligations?

Any person subject to VAT is bound to file in his VAT declarations at the Tax Administration:

• A return before the 15th of the month following the end of the operations, if he is subject to the actual tax regime (turnover > CFA 100 million francs) or the simplified tax system (turnover between CFA 50 and 100 million F)
• A return before the 15th of the month following the end of each quarter, if it falls under the basic system (turnover between 15 and 50 million CFA francs).

The Excise duties

What is Excise duty?

Excise duty is an ad valorem tax levied on consumption expenditure and collected upon delivery at the local market for some specific products.

What are the products subject to excise duty?

• Natural fruit juices
• Soft drinks, imported mineral water
• Beer made from malt
• Wine of fresh grapes … all the tariff position
• Vermouth and other wines from fresh grapes
• Other fermented beverages (cider, Perry, mead, for example)
• Brandy, whiskies, rum, gin and spirits, etc.. to the exception of: 2208 90 10 “non-denatured ethyl alcohol … “
• Cigars, cigarillos and cigarettes of tobacco or tobacco succedaneum
• Chewing and snuff tobacco
• Other manufactured tobacco
• Foie gras
• Caviar and succedaneum
• Salmon (frozen, dried, salted or in brine, etc.).
• Fine pearls, precious stones
• Precious metals
• Jewellery
• Private vehicles with combustion engines and a cylinder capacity higher than or equal to 2000 cm3

What is its origin?

It consists of:

• The delivery of goods and commodities by the producer or the wholesaler, mostly concerns sales or exchanges;
• Crossing the customs line for imports;

When is it due?

Excise duty is payable on delivery of the goods or during the import declaration.

What is the rate of excise duty?

The general rate of excise duty is 25%. This rate is not increased by the 10% additional council surtax.

The reduced rate of 12.5% applies to private vehicles with a cylinder capacity exceeding 2000 cm3 and to soft drinks.