Togo VAT Rules for Non-Resident Digital Services

Togo has recently joined the growing number of African jurisdictions extending VAT to digital services supplied by non-resident businesses. The new rules, introduced under the 2026 Finance Law and subsequent ministerial guidance, require foreign suppliers and digital platforms to account for Togolese VAT when supplying electronic services to customers located in Togo.

The rules are particularly important for streaming platforms, online marketplaces, app stores, software providers, cloud computing businesses, advertising platforms, and other businesses selling services remotely into Togo. The new regime reflects a broader international trend toward taxing digital consumption in the country where the customer is located rather than where the supplier is established.

In this article, we will delve into the legal framework, scope of taxable services, registration and compliance obligations, and the practical issues that non-resident businesses should consider.

Legal Framework and Scope

Togo introduced VAT obligations for non-resident digital service providers through Law No. 2025-002, commonly referred to as the 2026 Finance Law. The law became effective on January 1, 2026, while detailed implementation measures were later issued through Ministerial Order No. 031/MFB/CAB/UPF, effective February 19, 2026.

The new regime applies to electronic or digital services supplied by businesses established outside Togo to customers located in Togo. The rules are based on the destination principle, meaning that VAT is due where the customer consumes the service.

The standard VAT rate in Togo is 18 percent, and this same rate applies to non-resident digital services. Examples of services likely to fall within the scope of the new rules include:

• Streaming services for music, films, and television

• Online gaming and downloadable content

• Mobile applications and app store purchases

• Cloud computing and software-as-a-service (SaaS)

• Online advertising services

• Subscription-based digital platforms

• E-books, online courses, and other digital publications

• Online marketplaces facilitating sales of goods or services

The rules appear to apply primarily to business-to-consumer (B2C) transactions. However, the guidance remains limited and does not yet clearly distinguish between B2B and B2C transactions or explain whether a reverse charge mechanism may apply for Togolese business customers.

Platform Liability and Deemed Supplier Rules

One of the most significant aspects of the Togolese regime is the central role given to digital platforms.

Where a digital platform or marketplace facilitates the supply of digital services by a foreign seller to a customer in Togo, the platform may be treated as the person responsible for collecting and remitting VAT. In practice, this means that online marketplaces, app stores, payment intermediaries, and similar platforms may be required to account for VAT instead of the underlying supplier.

This platform-led approach follows the “deemed supplier” model increasingly used in other African countries, including Kenya, Tanzania, and Ghana. Under this model:

• The platform charges 18 percent VAT to the customer

• The platform reports and remits the VAT to the Togolese tax authorities

• The underlying supplier may no longer need to account for VAT separately for those transactions

The ministerial guidance also requires platforms to report annual revenue generated from users located in Togo. Failure to report may result in penalties equal to 10 percent of the undeclared transaction value.

For multinational businesses using third-party marketplaces or app stores, it is therefore important to determine which party bears the VAT responsibility.

Determining Whether a Customer Is Located in Togo

The new rules rely on the location of the customer to determine whether Togolese VAT applies. Although Togo has not yet published detailed place-of-supply guidance, foreign suppliers will generally need to collect evidence showing that the customer is located in Togo. The following indicators are likely to be relevant:

• The customer’s billing or residential address

• The country code of the SIM card used

• The location of the bank account or credit card

• The IP address or geolocation of the device

• The country selected in the customer account profile

Where two or more pieces of evidence indicate that the customer is in Togo, the supplier should generally treat the transaction as subject to Togolese VAT. This approach is consistent with the principles used in many other jurisdictions and with OECD guidance on the taxation of cross-border digital services, read together with the VAT Digital Toolkit for Africa.

Registration and Compliance Obligations

The implementation rules do not yet provide a detailed registration process for foreign suppliers. However, the legislation suggests that non-resident businesses making taxable digital supplies into Togo will need to register with the Togolese tax authorities. At present, there is no publicly confirmed registration threshold. This suggests that the obligation may apply from the first taxable sale in Togo. Non-resident suppliers and platforms should therefore expect to:

• Register for Togolese VAT

• Charge VAT at 18 percent on taxable supplies

• File periodic VAT returns

• Remit VAT in the required currency and format

• Maintain transaction records demonstrating customer location

• Retain supporting documentation for audit purposes

The rules do not currently indicate whether a fiscal representative must be appointed. Unlike some Francophone African countries, Togo has not yet expressly required a local representative for non-resident suppliers.

E-Invoicing and Digital Reporting

The new digital services regime has been introduced alongside broader reforms to the Togolese VAT system.

The 2026 Finance Law also introduces certified electronic invoicing for VAT-registered businesses. Although the detailed technical framework is still under development, the move toward e-invoicing suggests that Togo intends to implement a more data-driven and real-time VAT compliance system. For non-resident digital suppliers, this could eventually mean:

• Mandatory issuance of electronic invoices in a prescribed format

• Real-time or near-real-time reporting of transactions

• Integration with a future online tax portal

• Additional record-keeping and reporting requirements

Businesses already complying with e-invoicing systems in countries such as Kenya, Tanzania, or Senegal may find it easier to adapt once Togo publishes technical specifications.

Practical Challenges for Non-Resident Businesses

Although the new regime is now in force, several important practical issues remain unresolved.

Limited Administrative Guidance

The Togolese authorities have not yet published detailed guidance on:

• The VAT registration portal

• Filing deadlines

• VAT return format

• Payment procedures for foreign businesses

• Whether B2B transactions are excluded or subject to reverse charge

• How the platform rules apply in complex supply chains

Until further clarification is released, many non-resident businesses may face uncertainty regarding their exact compliance obligations.

System Readiness

The necessary technological infrastructure appears to still be under development. As a result, businesses may encounter delays in registration or practical difficulties in submitting VAT returns. Foreign suppliers should nevertheless begin preparing internal systems now by:

• Identifying customers located in Togo

• Updating pricing and invoicing systems to include 18 percent VAT

• Reviewing contracts with digital platforms and intermediaries

• Determining whether the supplier or the platform is responsible for VAT

• Monitoring further guidance from the Togolese tax administration

Conclusion

Togo’s new VAT regime for non-resident digital services is a significant expansion of the country’s indirect tax system into the digital economy. The rules place particular emphasis on platform liability and customer location, aligning Togo with broader African and international trends. However, the regime remains incomplete in several areas, especially regarding registration procedures, filing requirements, and the treatment of B2B transactions.

Togo is also introducing mandatory certified e-invoicing for VAT-registered businesses. While details of the clearance or reporting model remain limited, the inclusion of e-invoicing suggests a broader digital compliance architecture is being built in parallel with the digital services regime. 

Non-resident suppliers should not wait for further clarification before acting. International businesses with customers in Togo should review their digital supplies, update internal systems, and prepare for VAT registration and reporting as additional guidance becomes available.

Source: Law No. 2025-002, VAT Digital Toolkit for Africa