Tax rate by region Benin

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

VAT in Benin: A Guide for SaaS Businesses

Benin’s Value Added Tax (VAT) system, adopted in 1991, plays a crucial role in government revenue generation and economic stability. Understanding and complying with VAT regulations is essential for businesses operating in the country, especially those offering Software as a Service (SaaS).

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Benin

Benin adopted a VAT system in 1991, focusing on increasing government revenue and enhancing economic stability.

Official government link: Direction Générale des Impôts

18.00%

E-products and services VAT/Sales tax rate

9.00%

Reduced tax rate

Reduced tax rate product categories

No specific reduced tax rates for digital goods and services

Exempted product categories

Exemptions may apply to certain educational services, medical services, and some specific cultural products.

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

Before commencing any taxable activity in the country

Online registration possible

Yes

Local representative needed

Yes

Registration procedure

To register for VAT, complete the VAT registration application form and gather the required documents, such as your business registration and Tax ID. Submit the application to the tax authorities either online or in person, and then wait for confirmation of your VAT registration number.

List of digital and electronic services liable for tax

Software services, website hosting services, e-learning services, internet service packages, online marketplaces, digital presence services, and automated services.

Penalties

Penalties may be imposed for late registration or filing, including fines and interest on overdue amounts.

Registration threshold

No threshold, non-resident companies must register for VAT

Filing interval

Monthly

Filing deadline

By the end of the month following the reporting period.

E-invoicing requirements

Yes

Record keeping

Businesses must retain records of all transactions (invoices, receipts, etc.) for a minimum of 5 years.

How-To Guides: Benin SaaS VAT

Step: 1 Threshold

On April 14, 2023, the tax authorities of Benin published Circular N°0426/DC/SGM/DGI/DLC/DCFR which requires non-resident vendors (including online platforms) of digital services to consumers (B2C) in Benin to register for and collect VAT, regardless of the sales amount. Taxpayers have six months from the publication of the Circular to register.

Step: 2 Business Registration

Non-residents can use a simplified registration regime. It does not require a local physical presence or a tax representative, though appointing a representative is an option for standard regimes.

Step: 3 TIN/VAT Number

The tax ID is the IFU (Identifiant Fiscal Unique), issued by the Direction Générale des Impôts (DGI) via their digital portal.

Step: 1 Standard VAT Rate

The standard VAT rate in Benin is 18%.

Step: 2 VAT Formula

Use the following formula to determine yourtax amount: 
Tax Amount = Net Price x 18%

Step: 1 Selling B2C

The seller must charge 18% VAT at the point of sale to private individuals. Location is determined by the buyer’s IP address, billing address, or bank account location.

 

 

Step: 2 Selling B2B

The seller should not charge VAT if the buyer provides a valid IFU (TIN). The seller must verify this ID to treat the transaction as B2B.

Step: 1 Filing Interval

Non-resident digital platforms typically file on a Quarterly basis (simplified regime), though standard VAT payers file monthly.

Step: 2 Filing Deadline

Returns and payments are due by the last day of the month following the end of the calendar quarter.

Step: 3 Submission

Filing is done through the e-Services DGI Portal. Payments can be made in XOF, USD, or EUR via the portal’s integrated systems.

Step: 4 Record Keeping

Records must be maintained for 10 years (CGI requirement).

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Benin’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

Overwhelmed by SaaS sales tax compliance?

Our team of SaaS tax experts is here to help. Contact us today for a free consultation.

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