deduction right changes. However, the tax department has specified that there is no need for an adjustment in the event of deliberate destruction or scrapping of the asset.
and others taxes.
To be deductible, the VAT paid on imports must be shown on the import documents.
A deduction of 100% of the VAT on the purchase of a fixed asset is subject to the asset being retained as such by the company until the end of the third year following its acquisition.
Services provided abroad and used in the Republic of Congo are subject to VAT. When a taxable person
Example: A fixed asset is bought in Year 0.
Total including VAT:
If the asset is sold after Year 4, no adjustment is required. However, if the position of the asset changes with respect to the deduction right, the taxpayer must pay a fraction equal to the tax initially deducted, less one fifth per year or part thereof since acquisition.
Therefore, if the same asset is sold in the middle of Year 2, the following adjustment is required: 18 - (3/5 x 18) = 7.2
VAT is payable on the importation of goods when cleared for home consumption. The tax base varies as follows:
for goods imported from inside CEMAC, the tax base is the ex- works value minus transportation expenses; and
for goods imported from outside CEMAC, the tax base is the customs value plus excise duties
established in the Congo receives services from a supplier domiciled abroad that is not registered for Congolese VAT, the recipient of the supply must account for the VAT when the invoice is paid.
Goods exported from the Congo are zero-rated. Exports are considered as goods consigned beyond the Congolese customs territory. The zero rate applies whether the goods are delivered directly by the exporter or via an agent.
However, the application of the zero rate is subject to the export being the subject of a declaration approved by the Customs Department and the exporter appending the customs references of the goods that it has exported during the month prior to the declaration.
The provision of services by a Congolese company abroad to a foreign company is subject to VAT if the service is used by the foreign company for an activity conducted in the Congo, whereas a service provided in the Congo but used abroad is not subject to VAT.
Refunds to foreigners
In practice, VAT incurred by foreigners is not refunded.
Place, time and value of supply
Place of supply
VAT is supposed to apply to all business conducted in the Congo, i.e. with respect to sales, under the conditions for the delivery of goods in the Congo and, with respect to services, where the service rendered is used in the Congo.
As a result of these statutory provisions, the place of establishment of the parties to the contract, the place of invoicing or conclusion of the operation and the place of performance of the service do not have any effect on the application of VAT – only the place of consumption of the operation should be taken into account.
Time of supply
The time of supply can be summarised as follows:
goods – when the right to dispose of the goods as owner is transferred. If the sale contract stipulates that the supplier retains ownership of goods, the VAT is due when the goods are handed to the buyer;