Indirect tax

Indirect tax - Benin

This tax guide provides an overview of the indirect tax system and rules to be aware of for doing business in Benin.

Benin - 120x120.pngIndirect tax snapshot

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What is the principal indirect tax?

Value Added Tax (VAT) is the main type of indirect taxation in Benin.

Is there a registration limit for the tax?

The Beninese tax legislation does not provide any limit for this tax. However, to be able to invoice VAT, the annual turnover of the company must be over 50.000.000 XOF

Does the same registration limit apply to non-established businesses?

N/A.

Is there any specific legislation to tax non-resident supplies of electronically supplied/digital services to private consumers resident in your country?

Value Added Tax due on sales of goods and services rendered through e-commerce platforms is liquidated, declared, and paid back by the operators of the said platforms on behalf of the suppliers.

The Value Added Tax due on commissions received on sales made in the Republic of Benin through e-commerce platforms is declared and paid back by the operators of the said platforms.

For fulfilling their tax obligations above, the operators of e-commerce platforms are required to apply for registration with the tax authorities.

Without prejudice to the tax penalties provided for, failure to comply with the obligations set out above shall result in the suspension of access to the platform from Beninese territory.

Does a non-established business need to appoint a fiscal representative in order to register?

When the taxable person is not domiciled in the Republic of Benin, he must designate a representative in the Republic of Benin who undertakes to carry out all the necessary formalities and to make all the payments due.
In the absence of a fiscal representative, the recipient of the service must self-assess and pay the VAT on behalf of the third party.

How often do returns have to be submitted?

VAT tax return must be submitted monthly, generally the 10th of each month.

Are penalties imposed for the late submission of returns/ payment of tax?

The late submission of declarations is sanctioned by a late payment penalty of 20% of the amount resulting from the late declaration.

The penalty rises to 40% of the amount of duties resulting from the declaration when the declaration has not been filed two (02) months after the filing date.

Are any other declarations required?

No.

Are penalties imposed in other circumstances?

Yes, in case of tax audits or fraud.

  • Inaccuracies or omissions in a declaration or a document indicating elements to be retained for the assessment or liquidation of the tax lead to the application of a 20% penalty to the undeclared rights.
  • This penalty is increased to 40%:
  • in case of inaccuracy in the documents and written information provided in support of the declaration of actual profit.
  • if the taxpayer does not establish his good faith.
  • It is increased to 80%:
    • in case of fraudulent maneuvers.
    • in the event of automatic taxation for failure to file a declaration within eight (8) days of a formal notice.
Can the VAT incurred by overseas businesses be claimed if they are not registered in Benin?

No.

 

What information must a VAT invoice show?
  • The order number and date of the invoice.
  • The name or company name, address, unique tax identification number and trade registration number or the registration number in the roll of the professional association of the supplier.
  • The name or company name, address, and unique tax identification number of the client.
  • The nature and purpose of the transaction.
  • The quantity and precise designation per unit of the goods and services sold.
  • The unit and global price.
  • The price excluding value added tax.
Are there any current or anticipated Standard Audit File for Tax (SAF-T) or similar electronic/digital filing requirements eg invoice listing data file/real-time VAT reporting?

The VAT declaration can be done online on the portal “e-services benin”.
Every taxable person for VAT purposes is required to file a return in accordance with the prescribed model, indicating:
a) the amounts of his taxable and non-taxable transactions.
b) the gross amount of the tax assessed.
c) the details of the deductions made.
d) the amount of tax due or, if applicable, the tax credit.

However, the tax authorities shall check the declarations submitted by the taxpayer in order to assess their accuracy and sincerity from the premises of the authorities without prior notice.

To this end, it may ask the taxpayer for any information, justification or clarification relating to the declarations made or the documents filed.

Contact us

For further information on indirect tax in Benin please contact:

Jean-Louis DATTIE photograph

Jean-Louis Dattie
T +225 27 20 30 77 00
E jean-louis.dattie@ci.gt.com

Charles-Alexandre KOFFI image

Charles-Alexandre Koffi
T +225 27 20 30 77 00
E charles.koffi@ci.gt.com

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