• Google will implement an 18% VAT on all digital services in Senegal starting June 1, 2025, following the country's new digital tax regime introduced in July 2024.
• Professional clients must provide local tax information (NINEA or commercial register number) for compliant invoicing.

Starting June 1, 2025, Google will levy an 18% value-added tax (VAT) on all its digital services for users based in Senegal, signaling a significant step in the Senegalese government's push for digital taxation.

The U.S. tech giant will now require its business clients in Senegal to provide their local tax identification details, specifically the national identification number for businesses and associations (NINEA) or the commercial register number. This information will be used to generate invoices compliant with Senegal's General Tax Code. The VAT will apply across Google's digital service portfolio, including Google Ads, Google Cloud, software subscriptions, and streaming platforms.

This move follows the implementation in July 2024 of a new tax framework that mandates VAT on digital services provided by foreign companies without a physical presence in Senegal. To date, few multinational digital firms have officially complied. Google's adherence to this regulation positions it as one of the first major industry players to do so, potentially setting a precedent for others that have yet to follow suit.

According to Senegal's Directorate General of Taxes and Domains (DGID), the digital VAT has already generated over 1 billion FCFA (approximately $1.7 million) in its initial year. The government's medium-term objective is to increase these revenues to 10 billion FCFA as part of its broader strategy to modernize its tax system and broaden the digital tax base.

Google's compliance, as a global leader in digital services, is therefore considered a pivotal development for the success of this tax reform. It is anticipated to not only increase tax revenues for Senegal but also to foster greater parity between local businesses and multinational corporations operating online.

By Samira Njoya,

Editing by Sèna D. B. de Sodji