Invoicing and Tax regulation in Senegal
Invoicing Regulation in Senegal
In Senegal, invoicing regulation is mandatory for all businesses operating within its borders. The General Tax Code (Code General des Impots) guides all business and tax-related transactions. Businesses are required to provide a detailed invoice for every sale or service provided, indicating the nature of the transaction, the parties involved, and the transaction amount.
Real-time Reporting / Fiscalization in Senegal
Real-time reporting is currently not a mandatory requirement for businesses in Senegal. However, businesses dealing with sensitive and high-volume transactions are encouraged to adopt real-time reporting and fiscalization practices to ensure accurate, timely, and efficient reporting to the relevant tax authority.
E-Invoicing in Senegal
E-Invoicing is gradually gaining traction in Senegal, although not yet mandatory. The General Tax Code permits the issuance of electronic invoices. However, it is up to individual businesses to adopt this measure. By embracing e-invoicing, businesses can enhance efficiency, reduce costs, and streamline their tax filing procedures.
VAT/GST/Tax Compliance in Senegal
VAT compliance is mandatory in Senegal. The standard VAT rate is 18%. However, certain goods and services attract a reduced rate of 10%, while some are exempt. Businesses are required to register for VAT if their annual turnover exceeds a certain threshold. In addition, the tax authorities have strict rules regarding businesses' tax obligations, and non-compliance could lead to harsh penalties both for B2B and B2C transactions. As for B2G business, entities that supply goods and services to the government are also subject to the same VAT obligations, and the government might withhold tax at source.