Republic of Congo
Value Added Tax (VAT)
Who and what is liable?
- All economic activities conducted in the Republic of Congo are subject to VAT, regardless of their purpose, profitability, or the legal status of the business performing them, and irrespective of whether these activities are habitual, occasional, or originate in the Republic of Congo or from a foreign country.
- Any person, or company, engaged in an industrial, commercial, or professional activity is subject to VAT unless specifically exempt by law.
- A service is considered as provided in the Republic of Congo when the service is used or exploited in the Republic of Congo.
- Related activities are:
- 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, mainly related to specific sectors, education, agriculture, vital needs, investment and country development needs etc….;
- Exporters subject to VAT who realize more than 80% of their sale transactions abroad are authorized to withhold VAT paid on the purchases of goods and services
- VAT resulting from tax assessment is not deductible.
- VAT paid in cash in connection with invoices exceeding XAF 200,000 is not refundable.
- 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
- Oil companies and subcontractors’ services providers are exonerated for oil linked operations
Rates
- The Normal rate is 18.9% (VAT of 18% + additional 5% additional cents)
- Additional cents are not deductible
- The normal rate applies to all taxable transactions excluding those of the reduced rate
- The reduced rate of 5% applicable to certain goods of current consumption, and glass products made in Congo
- Exports and other listed transactions are at zero rate.
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 caught up 12 months 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 purchased by wholesalers or for electricity production
- 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 and, related spares parts, and maintenance.
- VAT paid on behalf of foreign suppliers, where the related services in Congo have not been taxed on income, subject to the application of international conventions on double taxation.
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 not refundable or may be compensated with others taxes with some conditions
Main obligations
- Accounting Bookkeeping
- Registration to Tax office
- Invoice must provide all administrative, factual and fiscal information about oneself and the client.
Last Update : 27 of November 2023
