Benin: New VAT rules and withholding obligation for digital platforms
Law No. 2026-10 became effective June 24, 2026.
The government of Benin on June 24, 2026, published Law No. 2026-10, which introduces new withholding obligations for platforms facilitating accommodation supplies and expands the VAT place of supply rules for platform services. The changes became effective June 24, 2026.
Background
Benin already operated a VAT regime applicable to nonresident providers of digital and electronic services before the enactment of Law No. 2026-10. The new provisions do not establish a new VAT registration and collection regime for nonresident digital service providers but instead introduce additional rules applicable to platform operators.
Withholding on accommodation and rental transactions
Platform operators are required to withhold 12% of the gross property rent for accommodation booking and rental collection transactions involving immovable property located in Benin when the transaction is facilitated through a digital platform connecting landlords and tenants.
Place of supply rules for platform services
The law clarifies that platform services are treated as supplied in Benin in the following circumstances:
- For online platform services, when the customer is resident in Benin
- For commissions earned by online sales or digital-service platforms, when the operator, seller, buyer, service provider, or user is located in Benin
- For real estate-related services, when the underlying real estate is located in Benin
For more information, contact a KPMG tax professional:
Philippe Stephanny | philippestephanny@kpmg.com