Republic of Chad
Value Added Tax (VAT)
Who and what is subjected?
- Companies and physical persons performing an operation that constitutes an economic activity and for which payment is made unless included in the list of exemptions in the law governing VAT
- VAT is liable, even if the residence of the physical person or the registered office of the legal entity is located outside Chad.
- Liability depends on turnover as per below:
50 millions - 100 Millions
100 millions - 500 Millions
Above 500 Millions
- Related activities concerns:
- Supply of goods;
- Provision of services;
- Importation 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;
- The leasing of underdeveloped land and unfurnished premises by real estate professionals.
- Some exemptions exist, mainly related to specific sectors, education, agriculture, vital needs, investment, Chad development, international transportation etc….;
- 18% for all taxable activities
- 9% for applicable to local food and construction necessities
- 0% for exportatione xports and international transport, refuelling products, and other products.
- Tax identification Number is a prerequisite to be eligible to VAT deduction
- Monthly Input VAT is deductible from output VAT under some conditions.
- If the amount paid exceeds the VAT payable, the credit is refundable
- Input VAT is charged on a regular invoice (providing all tax related information about the buyer) by taxpayers who are themselves liable
- 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 15th of the following month
- 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
- Accounting Bookkeeping
- Registration to Tax office
- Invoice must give all administrative, and fiscal information about the client, and the supplier.
Last Update: November 27, 2023