proof that the goods will be transported outside Senegal (international transportation documentation);
copy of export declaration stamped by Customs; and
banking documents proving that payment has been made by the importer.
All records and books of account must be held inside Senegal. The records must be kept for a period of ten years. Retention of records in electronic and scanned formats is not allowed.
Specific VAT rules
VAT on bad debts is recoverable. A claim must be made to the tax administration.
Land and buildings
Renting of residential blocks is exempt from VAT if they are unfurnished. The sale of houses is exempted from VAT where stamp duties are applicable.
Leasing operations are exempted from VAT where related to goods the supply of which are also exempted.
VAT on promotional gifts is recoverable if the value of each of them is not above XOF20,000.
Small retailer scheme
A small retailer can opt for the ‘global contribution regime’ and thus be liable to a fixed tax in full discharge, which includes:
customs duty – ranging from 5% to 20%;
• • • •
statistical tax – 1%; solidarity community levy – 1%; CEDEAO levy – 0.5%; and COSEC levy – 0.5%.
minimum income tax;
business licence tax;
fixed valuated employer tax; and
drinking establishment licence.
To benefit from this regime, the turnover of the small retailer should not exceed:
XOF50 million in the case of the supply of goods; or
XOF25 million in the case of the provision of services.
A tax scale determines the amount of tax due according to the turnover of the small retailer.
Apart from VAT, a specific tax is applicable to a stay in a hotel:
XOF600 per day for a single hotel bed;
XOF1,200 per day for a double hotel bed.
Transfer of a business
Transfer of a business is liable to registration duties and VAT is not applicable.
Warranty repairs are subject to VAT if they constitute a service invoiced separately. However, if the service is included in the price of the goods, VAT should not be applicable.
Other indirect taxes
In the case of the import of goods, some taxes are applicable such as:
The products on which the Senegalese authorities levy excise tax, and the relevant excise tax rates, are as follows:
beverages – 40% for beverages containing alcohol plus an additional tax ranging from XOF800 to XOF3,000 per litre and 2.75% for sparkling beverages;
tobacco – rate varies from 20% to 45%;
coffee – 3.8%;
tea – 3.8%;
Cola – 30%; and
fat – rate varies from 5% to 12%.
The following transfers trigger registration taxes:
transfer of shares or debts – 1%;
sale of real estate – 15%; and
sale of business – 15%.
Among the transactions subject to stamp duties are:
any document pertaining to registration formalities;
acknowledgment of payment in cash; and
bills of exchange.
The amount of stamp duty varies from XOF100 to XOF 2,000 per page of documentation.