In a move to bolster its tax revenue, Ivory Coast has recently announced a significant change in its tax policy. Online sales platforms and digital services in the country will now be subject to the Value Added Tax (VAT). This decision, issued by the General Tax Directorate (DGI), marks a substantial shift in the country’s fiscal landscape.

The affected operations span a wide range of digital services, including online advertising, data services, online marketplaces, digital content, online gaming, cloud computing, social media platforms, search engines, and both business-to-consumer (B2C) and business-to-business (B2B) transactions.

Notably, the DGI’s announcement includes a definition of “online markets,” describing them as services through which a digital platform directly connects service providers with potential clients, thus facilitating transactions between the parties involved. These markets encompass various services, such as online food delivery and the online rental of accommodations and vehicles.

Businesses impacted by this new tax policy will be required to declare and pay VAT in either euros or US dollars, using designated foreign currency bank accounts. These account details will be provided on the official DGI website.

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The implementation of this tax policy change is set to take effect within a six-month timeframe from the date of the announcement. This adjustment is consistent with Ivory Coast’s broader fiscal strategy to increase its tax base and adapt to the evolving digital economy.

This new tax measure was originally introduced in the fiscal appendix to the 2021–899 Finance Act of December 21, 2021, for the year 2022. It specifically targets online service sales and commissions collected by digital platforms that do not have professional facilities within the Ivorian territory.

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The decision to levy VAT on online sales and digital services reflects the global trend of countries adapting their tax policies to address the challenges and opportunities presented by the digital age. Ivory Coast’s move aligns with international efforts to ensure that the digital economy contributes its fair share to the national tax revenue.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. 
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard

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