Niger – VAT on Digital Services From 2025

The Council of Ministers, on December 31, 2024, adopted the draft ordinance on the Finance Law for 2025. The structure of the draft version of the Finance Law, in the part devoted to taxes, clearly indicates the vision of reviving the national economy.

The various tax provisions support this vision, which should increase the population’s spending power, tax new sectors, and equalize the playing field between foreign and local businesses. 

The adopted draft Finance Law 2025 introduces the VAT regime for online sales transactions. There is no distinction between local and foreign providers of digital services. 

Timeline 

There is no clear indication of the effective date of the tax provision that mandates the VAT regime’s introduction for online vendors.

New Framework 

Rules and Regulations 

Through Finance Bill 2025, the Niger Government proposed the introduction of VAT on digital services when the place of supply is deemed to be in Niger. There is no differentiation between domestic and non-resident digital service providers. Both groups should be liable for local VAT at 19%. 

Based on the provisionary note, this obligation should cover B2C supplies, while B2B should be reported under a reverse charge regime. 

On the same note, the following types of digital services should be under the scope of the new VAT regime: 

• E-commerce transactions (tangible provides through e-marketplaces); 
• Supplies of low-value goods;
• Streaming services; 
• Cloud-based services; 
• Downloads of apps, music, software;
• Access to online databases;
• Digital platforms. 

Considering the introduction of the VAT regime for the digital economy, Niger legislators are following the OECD framework. 

The proposal of the Government of Niger to tax the digital economy is an expected step towards the regularization of the sector that is gaining significant traction, and it will be an essential source of revenue for state coffers. The digital trade in Niger is consistently growing based on year by year basis. 

The introduction of the VAT regime in African countries for non-resident suppliers of digital services has gained momentum in the last few years. This trend is expected to continue in 2025 because more than a few countries have already established this novelty.