Central African Republic
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: November 27th, 2023
