The Beninese government enacted a law that introduced new tax obligations for digital platforms operating in the accommodation and rental sector. The law took effect on June 24, 2026, and imposes withholding requirements for digital platforms operating in this sector.

New Obligations for Digital Platforms

The law does not create a new VAT registration or collection requirement for non-resident digital service providers. Those VAT rules had already been implemented in 2025, requiring non-resident digital service providers to register for VAT from the first sale of taxable services. Instead, the new legislation adds specific obligations for platform operators that facilitate property rentals and accommodation bookings.

Under the new rules, a digital platform that connects landlords with tenants and facilitates the collection of rent for immovable property located in Benin must withhold 12% of the gross rent. In practical terms, the platform becomes responsible for withholding the gross rent when processing or collecting payments and for fulfilling the related tax obligation.

The law also clarifies the VAT place of supply rules for services provided through digital platforms. For online platform services, the service is treated as supplied in Benin when the customer is resident in Benin. For commissions earned through online sales or digital service platforms, the service is considered supplied in Benin when any relevant party, such as the platform operator, seller, buyer, service provider, or user, is located in Benin.

For real estate-related platform services, the place of supply is determined by the location of the underlying property. Therefore, if the real estate is located in Benin, the related service is treated as supplied in Benin regardless of where the platform operator or other parties are located.

Conclusion

The law reflects a broader move toward greater tax accountability for digital intermediaries, placing the withholding burden on platform operators. By targeting the accommodation and rental sector, Benin ensures that tax revenue from immovable property remains within its jurisdiction regardless of where the facilitating platform is based. This integrated approach to withholding and VAT place of supply rules clarifies the fiscal landscape for non-resident providers operating in the region.