Gambiaj.com – (DAKAR, Senegal) – In a significant move to bolster the country’s financial reserves, the new authorities in Senegal are set to introduce a value-added tax (VAT) on digital activities. This initiative, spearheaded by the General Directorate of Taxes and Domains (DGID), is part of a broader strategy to explore all internal avenues for revenue generation. Following the media sector, the focus now shifts to the highly lucrative digital world.

Starting July 1st, the VAT will be applied to the “supply of intangible goods and services via computer and/or electronic networks,” according to a report by the Senegalese daily newspaper L’Observateur. The new tax will cover a wide range of digital activities including digital intermediation (platforms and marketplaces that facilitate transactions between suppliers and customers), downloading and distribution of digital content (such as music, films, and online games), data storage and processing services (cloud services and database management), online learning and teaching (distance courses and training), and online content hosting (websites, images, and texts).

The measure, initiated by the Ministry of Finance and Budget, aims to ensure that both local and foreign suppliers, as well as intermediary platforms, contribute to the national treasury. The VAT will be calculated based on the turnover generated from these digital activities.

This new tax policy underscores the government’s commitment to modernizing its tax system and ensuring that emerging sectors contribute fairly to the nation’s economy. By targeting the digital sector, which has seen exponential growth, the authorities aim to tap into a new revenue stream that could significantly enhance the country’s financial stability.

As Senegal continues to adapt to the digital age, the introduction of this VAT marks a critical step in aligning the nation’s fiscal policies with the realities of a globalized and increasingly digital economy.