When performing taxable and non- taxable (exempted) operations, the deductible VAT is calculated by way of the apportionment formula, where:
the numerator is the total of taxable operations plus exports; and
the denominator is the total of taxable operations plus exempt operations plus exports.
The taxpayer may also choose to divide into sectors for VAT purposes (subject to conditions). If the division into sectors is retained, there will be:
a taxable sector, where the VAT paid to providers is fully deductible; and
an exempted sector, where the VAT paid is not deductible.
The VAT paid to providers for goods and services acquired for both sectors, which is deductible as input tax, is calculated in accordance with the above apportionment formula.
Adjustments An adjustment must be made:
if the goods are no longer used for a taxable activity. In such a case, the VAT must be calculated on the basis of the value of the goods;
in the case of a sale of depreciable goods for which input VAT has been deducted, an amount of VAT calculated in proportion to the remaining depreciable period must be paid. However, if the goods have been fully depreciated, there is no adjustment.
Imports of goods are subject to VAT at CIF value.
If a foreign service provider has not designated a local fiscal representative, the Senegalese debtor must pay VAT on behalf of the foreign provider.
and a limitation period may be applicable, applied depending on the purpose of the contestation.
Goods and services
Exports of goods and services are exempted from VAT.
Omission or error noted in the calculation or payment of the tax can be rectified by the tax administration within a period of five years. The maximum period for the taxpayer to claim for correcting his mistake is two years after the tax event.
Refunds to foreigners
Refunds to foreigners are not available in practice.
Returns and payment of VAT
Tax invoices A proper tax invoice should include:
the name, address and fiscal identification number of the supplier of goods or provider of services;
the nature and the quantity of the goods or services;
• • • • •
the net amount; the amount of VAT; the rate of VAT; the gross amount; and
the exemption provision from the Tax Code (if VAT is not applicable).
VAT returns must be deposited and payment of VAT must be made within 15 days after the end of the month within which the tax event occurred.
Interest and penalties
In the case of late payment, interest is due. The amount of interest is equal to 5% per month of the tax due.
VAT refunds are possible only where the liable person cannot deduct the VAT credit from the output VAT. In such case, a refund application must be made to the tax administration within a period of two years following the origination of the credit. However, that refund must be related to VAT on fixed assets.
There is no electronic invoicing practice and also no related specific rules in Senegal.
The Senegalese entity must use the French language and local currency when issuing invoices.
Credit notes and debit notes
Objections and appeals
Credit notes and debit notes are just accounting notions and are considered neither legal documents nor invoices.
Any liable person can contest liability for VAT before the courts after reception of an assessment notice or a notice of refusal of a VAT refund. A specific procedure must be followed
Additional export documentation
In case of export, the following documents are required: