The article summarizes the VAT systems in the top 5 African countries as follows:
South Africa: Standard VAT rate of 15%, with plans to increase the registration threshold from ZAR 1 million to ZAR 2.3 million from April 2026. Non-resident digital service providers are also required to register for VAT.
Nigeria: Standard VAT rate of 7.5% (increased from 5% in 2020). Certain basic goods and services are VAT-exempt. Designated businesses are required to withhold VAT on payments to suppliers and remit it to the tax authorities. Non-resident digital businesses may be required to collect and remit VAT on their transactions.
Kenya: Standard VAT rate of 16%, with a registration threshold of KES 5 million in annual turnover. Kenya has introduced a simplified VAT registration scheme for non-resident digital service providers and has also strengthened the e-invoicing requirements for VAT credit claims.
Egypt: Standard VAT rate of 14%, with a reduced 5% rate for certain machinery and equipment. Imported services are subject to a reverse charge mechanism, where the domestic recipient is responsible for remitting the VAT.
Morocco: Transitioning to a three-tier VAT system of 0%, 10%, and 20% by 2026. The standard rate is currently 20%, and a VAT withholding system has been introduced for certain suppliers and service providers.
The article emphasizes the importance of regularly verifying the latest official information and consulting tax professionals, as VAT rates, thresholds, and digital taxation rules are frequently updated in these countries.