Senegal: VAT on cross-border provision of digital services

Covered nonresidents are required to comply with the rules starting 1 April 2024

Covered nonresidents are required to comply with the rules starting 1 April 2024

The Ministry of Finance in November 2023 published Decree No. 034269 implementing value added tax (VAT) on the cross-border provision of digital services. The decree provides that covered nonresidents are required to comply with the rules starting 1 April 2024. 


The regime imposes VAT (currently at 18%) on the provision of “digital services,” which are defined as the provision of intangible goods and/or services of any nature, carried out in an automated manner on a computer and/or electronic network.

In addition, commissions received by nonresident intermediaries involved in the sale of services in Senegal also qualify as digital services.

The decree provides the following non-exhaustive list of transactions qualifying as digital services:

  • Digital advertising
  • Digital intermediation services
  • Download/streaming of music, movies, and video games
  • Provision of Software as a Service (SaaS) or software on the cloud
  • Provision of data
  • Electronic data management
  • The online provision of articles, newspapers, and information
  • Online learning and distance learning
  • Webhosting
  • Provision of travel, accommodation, and transport information
  • Television broadcasting or provision of websites
  • Data software hosting
  • Remote maintenance of software
  • Distribution of images, texts, and information
  • Organization of political, cultural, artistic, sporting, scientific and other broadcasts, and events
  • Provision of advertising platform
  • Provision of streaming platforms and subscription services
  • Cloud storage
  • Provision of downloadable content (applications, books, films)
  • Media subscription service, streaming, software programs
  • Audiovisual content offering
  • Supplier-recipient liaison service

The decree clarifies that the rules do not apply to tangible property imported into Senegal as the Senegalese customs authority will assess VAT during the customs clearing process. 

B2B v. B2C

The regime applies to covered services made to both businesses (B2B sales) and final consumers (B2C sales) located in Senegal.

The decree clarifies that VAT-registered customers in Senegal are required to self-assess VAT if the nonresident digital services provider is not registered for VAT in Senegal.

Customer location

The customer location may be determined by:

  • The billing address of the customer
  • The Internet Protocol (IP) address of the device used by the customer
  • Bank details, such as the location of the bank account used for payment, or the billing address of the customer held by that bank
  • The mobile country code (MCC) of the international mobile subscriber identity (IMSI) stored on the subscriber identity module (SIM) card used by the customer

Marketplace rules

The decree appears to shift the VAT obligation from the digital services provider to nonresident digital intermediaries, which include digital platforms and online markets or marketplaces that connect suppliers and their customers to enable them to conclude transactions using information technology.


In accordance with the provisions of the tax code, there is no VAT registration threshold for nonresident digital services providers.

Covered nonresidents may register using a simplified remote registration procedure via the website of the tax authority of Senegal:

The decree explicitly states that nonresident digital services providers are not required to appoint a local fiscal representative.

Once registered, nonresidents are assigned a tax identification number and access rights to the online filing platform of the tax authority.

The decree explicitly clarifies that the registration of a nonresident digital services provider does not create a permanent establishment for income tax purposes.

VAT invoicing

While the decree does not mention the requirement for nonresident digital services providers to comply with the local invoicing requirements, it would appear the cautious approach to comply with these requirements, as B2B customers may see their right to recover VAT challenged in case they are not in possession of a valid invoice.

The decree, however, clarifies that nonresident digital services providers are not subject to the requirement to provide a detailed list of customers established in Senegal, unless explicitly requested by the tax authority. 


Penalty provisions in the general VAT law will apply, including a publication of a list of internet service providers and identifying compliant/non-compliant ones.              

For more information, contact a KPMG tax professional:

Philippe Stephanny |

Chinedu Nwachukwu |



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