Value Added Tax (VAT)

Value Added Tax (VAT)

Who /what is subjected?

  • Companies and physical persons performing onerous activities in Cameroun with actual or forecasted turnover above 30 million
  • Company or physical person engaged in an industrial, commercial, or professional activity is subject to VAT unless specifically exempt by law
  • 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.
  • Etc….
  • Some exemptions exist such as:
    • Basic subsistence goods, education and hospital related services.
    • Activities already subject to another taxation such as gold and diamond extraction, insurance related activities, interest
  • 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

  • General rate: 19%
  • Reduced rate at 5% for listed first needs goods
  • Zero rate: 0% for exportations declared to customs office and international transportations.

Deductions

  • Tax identification Number is a prerequisite to be eligible to VAT deduction
  • Monthly Input VAT is deductible from output VAT under some conditions regarding VAT deductibility
  • Input VAT is charged on an invoice by a taxpayer eligible to VAT, except for foreign suppliers
  • Input Vat is deductible as soon as VAT is payable from the supplier
  • Deductibility is valid 12 month after the date it became due, with exceptions Exportation companies and company realizing a turnover of more than 100 million
  • 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 is done by professional of such activities.

Declaration and Payment

  • Variance between Output VAT and Input VAT is monthly declared latest on the 15th of the following month and paid by wire transfer to public treasury.
  • VAT is withheld at source by state, state and public related companies, urban and rural councils and some private companies listed and yearly updated. Rate is 10%
  • In case of no VAT taxable activity during a month, a “NIL” Declaration should be done
  • Credit VAT is refundable, but cannot be compensated with others taxes

Main obligations

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

Last Update: July 31st 2021

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