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are liable for VAT when they occur in a competitive sector;

  • operations relating to the rental of non-building land and bare premises;

  • services concerned with the legal practice of medical or paramedical professions, except for the expenses of accommodation and catering;

  • educational establishments working within the framework of an approval provided by the Department of National Education and using an approved price;

  • the fuelling of an aircraft departing for a foreign country;

  • the sales, transfers or services carried out by the state, the local authorities and public establishments that are neither industrial nor commercial;

  • certain essentials that are exempt from Turnover Tax and supplemented in accordance with the CEMAC list (bread, milk, spectacles, etc.);

  • certain equipment and goods specifically intended only for oil and mining research;

  • interest-bearing foreign loans;

  • interest-bearing deposits made by nonprofessionals with credit institutions or financial establishments;

  • examinations, consultations, care, hospitalisation, medical analysis and biological works, as well as supplies of prostheses carried out by medical establishments;

  • some operations subject to specific taxes (such as insurance), import of items for oil and mining research exempt in terms of the CEMAC Code, and transfer of real estate and corporate goods liable to taxes on transfer, except operations carried out by a property or leasing agent;



  • sums paid to the Central Bank;

  • rental of empty premises used for housing;

  • equipment used for the production and distribution of water and electricity;

  • drinking water and electricity provided by the STEE or a state- owned company;

  • interest related to credits amounting to XAF1 to XAF1 million agreed by financial establishment for interests related to building and for microcredit with a schedule of reimbursement of at least six months and monthly payments of XAF100,000 or less; and

  • games of chance and entertainment.

Zero-rated supplies

There is a 0% rate for exports and related international transportation. This 0% rate only applies to exports that have a statement duly stamped by the Customs Services.

Input tax

Input tax allowed / tax allowance

Only registered taxpayers that are subject to the simplified tax system (‘Système simplifié d’imposition’) or to the effective system (‘Système du réel’) are entitled to a tax allowance.

These taxpayers carry out taxable operations, usually or occasionally, in an independent manner. VAT can only be deducted if the goods and services are necessary for the activity.

Input tax expressly denied

Non-taxpayers and persons who are subject to the general and full discharge of tax (‘Impôt Général Libératoire’ – income tax for small entities), except if they have chosen the simplified tax system, are not allowed to deduct VAT.

For some operations the VAT deduction is expressly denied, for example:

  • housing, lodging, accommodation, reception, spectacles, hiring of vehicles and transport of people, except for tourism, accommodation and spectacle-manufacturing professionals;

  • housing expenses;

  • services linked to goods for which a VAT deduction is denied;

  • petroleum products, except fuels that are bought for resale or for the production of electricity that will be resold;

  • goods yielded without remuneration or at ludicrous remuneration; and

  • vehicles or engines designed for the transport of people or for mixed use, which constitute fixed assets.

Partial exemption

Some firms are subject to a partial exemption because they carry out both operations that are subject to a VAT deduction and operations that are not. When performing taxable and non-taxable (exempt) operations, the deductible VAT is calculated upon a prorate determined as follows:

  • taxable operations + exports

  • taxable operations + exempt

operations + exports

The taxpayer may also choose to divide into sectors for VAT purposes (subject to conditions), namely a taxable sector (where VAT paid to providers is fully deductible) and an exempt sector (where VAT paid is not deductible). The VAT paid to providers for goods and services necessary for both sectors is deductible upon a proportional share calculated as indicated above.

For the calculation of this proportional share, the following elements are not taken into account:

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