Value Added Tax (VAT)

Value Added Tax (VAT)

Who and what are liable?

• Companies and physical persons performing onerous activities in Cameroun with actual or forecasted turnover above 50 million

Related activities concerns:

• Supply of goods; the provision of services; the import of goods; real estate activities.
• Construction and delivery of buildings by real estate professionals.
• Sale of second-hand goods and equipment by professionals.
• Transfers of non-exempt assets; and the leasing of underdeveloped land and unfurnished premises by real estate professionals.

Some exemptions exist when activities are subjected to another taxation or decided by legislator with cost of life reduction purpose

Non-resident VAT payers are required to appoint a solvent resident representative to be jointly responsible for the payment of VAT and the discharge of other VAT obligations

Rates

Standard  rate is 19.25% (i.e. a 17.25% VAT and 10% council tax)

 Exports are zero-rated.

Deductions

• Tax identification Number is a prerequisite to be eligible to VAT deduction
• Monthly Input VAT is deductible from output VAT under some conditions
• Input VAT is charged on an invoice by a taxpayer under actual regime, except for foreign suppliers
• Input VAT is deductible as soon as VAT is payable from the supplier
• For transactions above 100.000XAF, deduction is admitted if payment was done by wire transfer, or cheque
• Deductibility is valid up to the end the second year after it became due
• Deductibility is admitted if goods or services are directly linked with activity.
• Expenses like lodging, Hotels, Restaurant, tourism vehicle rent, are not deductible unless it’s done by professional of such activities.

Declaration and Payment

• Variance between Output VAT and Input VAT is monthly declared latest on the 15^th of the following month and paid by wire transfer to public treasury account opened near the Central Bank.
• VAT is withheld at source by state, state and public related companies, urban and rural councils and some private companies listed and yearly updated.
• In case of no VAT taxable activity during a month, a “NIL” Declaration should be done
• Credit VAT is refundable or may be compensated with others taxes with some conditions

Main obligations

• Accounting Bookkeeping
• Registration to Tax office
• Invoice must give all administrative, factual and fiscal information about the client

Last update: 27 of November 2023