Niger Imposes VAT on Digital Platforms Under 2025 Finance Act

March 22, 2025

The African VAT landscape is changing rapidly, with an increasing number of countries introducing VAT on digital services and, in some cases, Digital Services Tax or equivalent to that tax. Niger is one of the latest countries that decided to implement VAT on digital platforms.

Impact on Digital Platforms

The Finance Act 2025, announced on December 31, 2024, included new VAT rules and obligations for digital platforms. However, the Finance Act did not provide sufficient information, and new regulations were unclear. Therefore, on January 24‚ 2025, the Tax Authority released Circular No. 004, confirming new obligations for local and foreign digital platforms to apply a 19% VAT on goods and services they provide and are carried in Niger.

Nevertheless, neither the Finance Act nor the Circular provides details on registration, tax forms, reporting frequency, and other essential compliance requirements that digital platforms must meet.

However, the Niger Tax Code states that foreign taxable persons must appoint a local tax representative to fulfill VAT obligations and requirements. Therefore, it can be assumed that the same rules apply to digital platforms.

Additionally, the Finance Act does not differentiate B2B and B2C transactions or mention the reverse-charge mechanism. Regarding the invoicing rules, general provisions of the Tax Code state e-invoices are required for B2B and B2C transactions.

Although the Circular was released on January 24, applying the VAT rules for digital platforms has been effective since January 1.

Conclusion

The Finance Act does not specify the penalties for non-compliance but refers to the Tax Code and its provisions. However, the Finance Act does allow the Tax Authority to suspend access to digital platforms in cases of non-compliance with VAT rules and regulations.

Ultimately, the competent governing body is expected to issue additional information and guidelines for digital platforms on their obligations to report and remit VAT.

Source: Finance Act 2025, Circular No. 004, KMPG

When did Niger’s VAT rules for digital platforms come into effect?

The VAT obligations for digital platforms became effective on January 1, 2025, as part of Niger’s 2025 Finance Act.

What VAT rate applies to digital platforms in Niger?

Digital platforms must apply a 19% VAT on all goods and services provided and consumed in Niger.

Do the VAT rules apply to both local and foreign digital platforms?

Yes, both local and foreign digital platforms are required to comply with the new VAT rules in Niger.

Are foreign digital platforms required to register for VAT in Niger?

While the Finance Act lacks specific guidance, Niger’s Tax Code requires foreign taxable persons to appoint a local tax representative for VAT compliance.

Is there a difference in VAT treatment for B2B and B2C transactions?

No, the 2025 Finance Act does not differentiate between B2B and B2C transactions, nor does it mention a reverse-charge mechanism.

What are the penalties for non-compliance with Niger’s VAT rules?

Although penalties are not explicitly detailed, the Tax Code applies. The Tax Authority may also suspend access to non-compliant digital platforms.

VAT Compliance and Reporting

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