Togo: VAT obligations for nonresident providers of digital services and platforms

Order No. 031/MFB/CAB/UPF (Arrêté N° 031/MFB/CAB/UPF), dated February 19, 2026, sets out how VAT applies to digital services supplied by nonresident providers and platforms to users in Togo.

Scope

Digital services are defined as services supplied electronically with minimal human intervention. They include online advertising, streaming, cloud computing, the sale of data, digital intermediation platforms, and subscriptions to content. A "foreign digital services provider" is any nonresident company offering digital services to users in Togo.

The order further clarifies that where a physical good is imported, the nonresident online supplier or platform operator does not collect VAT. The local acquirer pays the VAT to the customs authorities under the customs provisions in force.

Business-to-business (B2B) vs. business-to-consumer (B2C)

The order does not distinguish between B2B and B2C sales. It applies to digital services supplied to "local users," defined as any individual or legal entity domiciled or established in Togo. The fallback self-assessment mechanism (see Registration and collection below) applies to local users that are subject to VAT.

Customer location

Consumption is deemed to take place in Togo if at least one of the following criteria is met:

• The internet protocol (IP) address is located in Togo.
• The customer's billing address is in Togo.
• The payment instrument was issued by a financial institution domiciled in Togo.
• A Togolese phone number is used to access the service.

Marketplace and platform rules

The order defines a "digital platform" as a digital tool that connects persons remotely for the online sale of goods or the supply of services. A platform can be operated by a supplier selling its own products or by an operator connecting suppliers and customers. Foreign platform operators are addressed alongside foreign providers, including in the registration and fallback rules. The order does not expressly state whether a platform is liable for VAT on sales made by third-party suppliers through the platform. However, the party liable will likely be the provider that invoices and collects payment for the service. This will likely be further clarified in upcoming guidance.

Registration and collection

Foreign providers must register with the tax authority electronically from the start of their activity and appoint a tax representative domiciled in Togo to fulfill their tax obligations. The order sets no registration threshold.

If there is no proof that the nonresident provider or platform operator is properly registered, the Togolese business recipient must self-assess, collect, and pay the VAT.

VAT invoicing

The order states that VAT must be stated on the e-invoice sent to the customer. This will likely be further clarified in upcoming guidance.

Compliance

Providers must file VAT returns monthly, remit the VAT to the Treasury by the 15th day of the month following the month of the transaction, and keep supporting records for at least 10 years. The order does not specify the currency of declaration or payment.

Penalties

Noncompliance is subject to the standard penalties in the tax procedure code.

Implementation timeline

The order came into effect on its date of signature, February 19, 2026. However, the operational arrangements that would allow nonresident companies to complete their electronic registration and meet their filing obligations are not yet available. The tax authority is expected to put the dedicated registration platform in place. Even though there is no compliance mechanism, it is possible that the tax authority may require a VAT adjustment for fiscal year 2026 for foreign providers of digital services in Togo. This will likely be further clarified in upcoming guidance.
 

For more information, contact a KPMG tax professional:

Philippe Stephanny | philippestephanny@kpmg.com

Gabriel Adjoble | gadjoble@kpmg.tg