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  • delivery to oneself;

  • grants for non-taxable equipment;

  • sales of assets;

  • indemnities that are not consideration for a taxable operation; and

  • reimbursement of disbursements.


When VAT has been deducted on fixed assets and there is either a change in the law or a change of use before the fourth year following the year in which the assets were purchased, the taxpayer must pay back a part of the VAT previously deducted, calculated as one fifth per year spent since purchasing the asset.

The full amount of VAT deducted must be paid back where services and goods that are not fixed assets are subsequently used for non-taxable operations.


For the import of goods, the VAT base consists of the value of the goods as defined by the CEMAC customs code plus customs duties and excise taxes, except the VAT and the 4% tax deduction at source.

Usually, the value of the goods is the ‘cost, insurance and freight’ value, upon arrival in Chad, with the exclusion of VAT and tax deductions at source. VAT on imports will be paid at the same time.


There is a 0% rate for exports and related international transportations. This rate only applies to exports where the documentation has been duly stamped by the Customs Services.

To the best of our knowledge, there are no specific rules relating to refunds to foreigners.

– amount of all taxes, fees and withholding included, except VAT and the 4% provisional instalment;

delivery to oneself – purchase price of goods, manufacturing cost of extracted, made or transformed goods or services, with a share of the overheads;

imports – value of the goods as defined by the CEMAC customs code, and on this value, the custom duties, excise taxes and other possible taxes, except the VAT of 4% withholding, are added. Usually, the value of the goods is the value of ‘cost, insurance, freight’, excluding VAT and the withholding;

secondhand goods – either the full price without taxes if the seller bought the goods from another seller subject to VAT, or the purchase price increased by the markup without taxes if the seller bought the goods from another seller who is not subject to VAT; and

returnable packing (that can be identified, returned and reused) – the deposit value when it is lost or late returned.

The following amounts also form part of the value of a supply:

all taxes, fees, duties and withholding except the VAT of 4% withholding;

incidental expenses for the delivery of goods and services invoiced to customers;

indemnities other than damages;

grants that are consideration for a taxable operation or that are the additional price for such an operation or that are assigned to compensate for the insufficiency of the business activity receipts; and

refunds of the expenses made by a supplier for one of its customers, which are not disbursements.

Place, time and value of supply

Place of supply

An operation (subject to exceptions) is deemed to be performed in Chad in the case of:

  • sales, when the delivery of the goods occurs in Chad;

  • services, when the service is used in Chad or when the service provider is established in Chad; and

  • international transportation, when the carrier is established in Chad, wherever the transportation is performed.

Time of supply

The time when payment of VAT must be made for a supply is as follows:

  • on the sale, delivery and self- delivery – delivery of the goods;

  • on the provision of services and business with state and local collectives – payment of the price or instalment; and

  • imports – at the time of customs clearance.

Value of supply

The value of supplies, constituting the taxable base, is as follows:

  • provision of services – price of the services or all sums, values, goods or services that have been received or that will be received as consideration;

  • property works – amount of the detailed account of the work, markets, invoices or deposit and the works given to the subcontractor by the contractor;

  • deliveries and other kinds of exchange of goods carried out in Chad – customer sale price or all sums, goods or services received as consideration;

  • markets financed by the state, loans, subventions or donations

PricewaterhouseCoopers 27

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