The issue of a credit note or a debit note will form the basis for the requisite adjustment to the relevant VAT return.
Records must remain at the tax authorities’ disposal and must be kept for three years. No special requirements exist as to the form in which the records must be kept, but paper records must be provided to tax authorities when required.
Specific VAT rules
VAT paid on bad debts is not directly deductible from input VAT. However, as provisions and losses are accounted for inclusive of VAT, the deduction of provisions and losses in the P&L accounts will result in a deduction of VAT paid on bad debts.
Land and buildings
Sale and rental of houses are generally not subject to VAT.
Leasing Leasing operations are subject to VAT.
The VAT incurred on the acquisition or production of promotional gifts may be recovered as input VAT.
Secondhand goods are subject to VAT, except for sales made by individuals. Input tax on secondhand goods is recoverable. Exports of secondhand goods are not subject to VAT.
VAT applies to the tourism industry, except for transportation activities, which are exempted.
Transfer of a business
VAT applies to the transfer of a business.
According to the scope of VAT, only goods sold or services rendered for a valuable consideration are subject to VAT. In the case that warranty repairs are not invoiced, VAT is not due. Services rendered to foreign companies are subject to VAT.
Other indirect taxes
Import duties vary from 0% to 20%, according to the classification of the imported goods in the customs nomenclature, which is common to the UEMOA zone (an integrated economic zone including Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo).
Excise duty is a consumption tax that is due on oil products sold in or imported into Côte d’Ivoire, except products already taxed and oil products intended for industrial activities or purchased by foreign embassies in Côte d’Ivoire.
Transfer duties are due in the case of registration of several transactions such as:
real estate renting – 2.5%;
transfer of lease – 10%;
sale of real estate – 10% or 7.5%;
sale of business – 10%.
Stamp duty is due on several documents and deeds subject to registration formalities and also acknowledgment of payment in cash bills of exchange.
Tax on alcoholic beverages
This tax is due on alcoholic and nonalcoholic beverages sold in Côte d’Ivoire. Local nonalcoholic beverages are exempted. The tax base is the product customs value. The rate depends on the type of beverage:
wine – 25%;
champagne – 25%;
beer – 13%;
spirit alcoholic beverages with less than 35% alcohol – 35%; and
spirit alcoholic beverages with more than 35% alcohol – 45%.
Taxes on tobacco
There are two taxes that are payable on tobacco products, a general tax and a special tax. The rate of the general tax varies from 23% to 35% according to the nature of the product. The rate of the special tax varies from 2.5% to 10%, according to the nature of the product. The special tax is designed to support sports development.
Special tax for equipment
This tax is payable on turnover at the rate of 0.08% and is collected in the same circumstances as VAT. The tax is not invoiced to customers, but directly paid by the taxpayers on the basis of their turnover.