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The Value Added Tax (VAT) system in Niger was introduced by the Finance Law of January 1986, designed to replace the previous production tax and tax on services. Since its implementation, VAT has become a crucial component of the country’s tax system. Below is an overview of the key aspects of VAT in Niger, including its scope, applicable rates, and registration requirements.
VAT in Niger is charged on the supply of goods and services rendered or used within the country, subject to a list of exemptions. The tax applies to all economic activities, including the operations of independent professionals such as lawyers and chartered accountants. However, banking activities are excluded, and a specific tax is applied.
- Tax Base: The VAT tax base is the total amount paid for goods or services provided.
- Imports: For imports, the VAT base is determined by the customs valuation, which includes the sale price of goods, cost of insurance, and transportation to Niger, plus any applicable excise duties.
VAT incurred on acquiring goods and services wholly used to make taxable supplies can be claimed as input tax. However, there are exceptions where input tax on certain goods and services is not recoverable, as outlined by the tax rules.
Niger has introduced a VAT prepayment or withholding tax scheme, which adds further compliance requirements.
Rates Applicable
The standard VAT rate in Niger is 19%. However, there are reduced rates for certain goods and services, including:
- Reduced Rate of 5%: Applied to the importation and sale of sugar, edible oils, animal feed, and manufactured milk.
Registration Threshold
There is no specific registration number required for VAT compliance. However, Niger uses a single tax identification number for all tax obligations. Notably, businesses authorized to invoice VAT must meet specific turnover requirements:
- Businesses (natural persons or corporate/commercial entities) must have an annual turnover before tax of at least XOF 50 million (approximately EUR 76,224.50) to register and collect VAT.
- Smaller businesses with turnover below this threshold are exempt from collecting VAT and are not eligible to deduct VAT on their purchases.
Special Provisions for Non-Residents
Non-residents engaged in taxable transactions in Niger must appoint a tax representative domiciled in Niger. This representative, accredited by the Niger tax authority, is responsible for handling VAT obligations and ensuring compliance. Failure to comply with VAT requirements can result in penalties, with the beneficiary of the taxable service being held liable for the due VAT and penalties.
VAT Compliance Summary
- VAT Rate: 19% (standard), 5% (reduced rate on select goods)
- Tax Base: Price paid for goods/services (including insurance, transportation for imports)
- Input Tax: Recoverable on goods/services used for taxable supplies (with exceptions)
- Registration Threshold: XOF 50 million annual turnover required for VAT registration
- Non-Residents: Must appoint a tax representative in Niger
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