Value Added Tax (VAT)

Value Added Tax (VAT)

Who and what is liable?

All Physical persons or company performing taxable operation while aiming at generating a profit

  • 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.
  • Transfers of non-exempt assets; and the leasing of underdeveloped land and unfurnished premises by real estate professionals.
  • Taxpayers performing activities with revenue equal or more than 150 million XAF
  • Services delivered on Gabon territory though the taxpayer is not resident on in the country.
  • Foreign company or persons should designate a representative,
  • if not tax local beneficiary of goods or service delivery will be liable of tax including related penalties.

Some exemptions exist, mainly related to specific sectors, education, agriculture, vital needs, investment and country development needs etc….;

Rates

  • General rate: 18% for luxurious goods
  • Reduced rate: 10% for necessity goods
  • Reduced rate: 10% for sales and services delivery related to Cement
  • Zero rate : 0% for exportations 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
  • Input VAT is charged on a regular invoice by a taxpayer subjected
  • Input VAT is deductible as soon as VAT is payable by the supplier
  • Deductibility can be catched up 12 month following the month it became due

Some items are deemed not deductible

  • Expenses related to: Housing, Accommodation, Restaurant, party and show (spectacle), except for professionals.
  • Oil products except those used for fix production machinery
  • Importation of goods re-exported without any transformation
  • Goods purchased by company but used by third parties, managers or companies’ employees
  • Services on goods whose deduction is not admitted
  • A car used for the transportation of staff or goods with maximum capacity of less than 10 seats, related spares parts, and maintenance.

Declaration and Payment

  • Variance between Output VAT and Input VAT is monthly declared latest on the 20th of the following month and paid to public treasury.
  • 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 Book keeping
  • Registration to Tax office
  • Invoice must provide all administrative, factual and fiscal information about the client, and the supllier.

Last Update: 29 of July 2021

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