The analysis reveals significant variations across African countries in legal frameworks, compliance measures, and operational strategies when benchmarked against international standards such as the OECD’s 2017 International VAT/GST Guidelines and the 2023 VAT Digital Toolkit for Africa.
While countries align closely with global best practices for some components of the reforms, there are several divergences due to economic, infrastructural, and administrative constraints. Common gaps include the lack of simplified compliance regimes, the absence of VAT thresholds for non-resident operators, and invoicing requirements.
Senegal’s reform demonstrates a pragmatic approach, aligning with international standards by introducing simplified registration and invoicing, leveraging digital infrastructure, and avoiding mandatory local representation for foreign operators. However, challenges persist, including enforcement capacity, the administrative burden on small foreign businesses, and limited interoperability with other tax systems. The paper provides actionable recommendations to address these issues, including harmonising VAT regimes across the continent, strengthening digital infrastructure, and fostering international cooperation.
Authors
