VAT [Value Added Tax] is an indirect tax on consumption.
This is a percentage increase in the price of every item we buy and every service we receive, this model of tax unification allows for greater transparency and ease of taxation.
How do I calculate VAT?
The amount of tax is levied on the value added at each stage of the process.
For example, suppose a consumer buys a lampshade for $100. With a VAT rate of 17%, $17 would be the tax on the product.
Dividing this value by the steps it takes to get this lampshade to the consumer, we could put it this way:
Stage | Selling Price | Value Added | VAT (17%) |
Lamp factory | $50,00 | $50,00 | $8,50 |
wholesaler | $75,00 | $25,00 | $4,25 |
retailer | $100,00 | $50,00 | $4,25 |
VAT Total | $ 17,00 |
VAT rate on goods and services in Africa as of 2021, by country
Country | Last | Reference |
Algeria | 19% | Dec/21 |
Angola | 14% | Dec/21 |
Benin | 18% | Dec/20 |
Botswana | 12% | Dec/21 |
Burkina Faso | 18% | Dec/20 |
Burundi | 18% | Dec/20 |
Cameroon | 19.50% | Dec/21 |
Cape Verde | 15% | Dec/21 |
Central African Republic | 19% | Dec/20 |
Chad | 18% | Dec/21 |
Comoros | 10% | Dec/20 |
Congo | 16% | Dec/21 |
Djibouti | 10% | Dec/20 |
Egypt | 14% | Dec/21 |
Equatorial Guinea | 15% | Dec/21 |
Eritrea | 5% | Dec/20 |
Ethiopia | 15% | Dec/21 |
Gabon | 18% | Dec/20 |
Gambia | 15% | Dec/20 |
Ghana | 13.50% | Dec/21 |
Guinea | 14% | Dec/21 |
Ivory Coast | 18% | Dec/21 |
Kenya | 16% | Dec/21 |
Lesotho | 15% | Dec/21 |
Madagascar | 20% | Dec/21 |
Malawi | 16.50% | Dec/21 |
Mali | 18% | Dec/20 |
Mauritania | 16% | Dec/21 |
Mauritius | 15% | Dec/21 |
Morocco | 20% | Dec/21 |
Mozambique | 17% | Dec/21 |
Namibia | 15% | Dec/21 |
Niger | 19% | Dec/21 |
Nigeria | 7.5% | Dec/21 |
Republic of the Congo | 18.90% | Dec/21 |
Rwanda | 18% | Dec/21 |
Senegal | 18% | Dec/21 |
Seychelles | 15% | Dec/21 |
Sierra Leone | 15% | Dec/20 |
Somalia | 10% | Dec/20 |
South Africa | 15% | Dec/21 |
Sudan | 17% | Dec/20 |
Swaziland | 15% | Dec/20 |
Tanzania | 18% | Dec/21 |
Togo | 18% | Dec/21 |
Tunisia | 19% | Dec/21 |
Uganda | 18% | Dec/21 |
Zambia | 16% | Dec/21 |
Zimbabwe | 14.50% | Dec/21 |
The importance of VAT
VAT is important because that increases the revenue of the governments in countries that actually use that system. in addition, with a VAT the amount owed to the government by is paid partially, causing less discomfort to the consumer.
Leave a Reply