Togo Raises VAT Threshold to CFA100 Million for Businesses

Public finance

Wednesday, 22 January 2025 10:52

Togo Raises VAT Threshold to CFA100 Million for Businesses

(Togo First) - The Togolese government has increased the minimum turnover required for businesses subject to the Value Added Tax (VAT). The change, in effect since January 1, 2025, brings the figure to CFA100 million, against CFA60 million before. The country’s tax office, OTR, recently recalled the increase, which is included in the 2025 Finance Act.

According to the OTR, the measure applies to natural and legal persons. The tax also informed that VAT-subject businesses that missed the new threshold in 2024 must fulfill their tax obligations by December 31, 2027. In the meantime, they must continue to invoice, declare, and pay VAT, even if their sales are under CFA100 million.

Regarding the why of the threshold increase, the OTR said it aims to reduce the tax burden on small and medium-sized enterprises (SMEs). This adjustment is part of a broader effort to align the tax system with local economic conditions.

Philippe Tchodié, General Commissioner of the OTR, warned that “Businesses that exceeded the old threshold but fail to meet the new by the set deadline would lose their VAT status. Businesses that want to relinquish the status before the deadline must formally ask the Tax Commissioner”.

It should be noted that businesses can voluntarily choose to be subject to VAT. In this case, they must comply with tax obligations for at least five years according to the General Tax Code (CGI).

Certain professions are automatically subject to VAT regardless of their sales figures. This includes lawyers, notaries, maritime experts, freight forwarders, and other specific professions.

This article was initially published in French by Esaïe Edoh

Edited in English by Ola Schad Akinocho

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