Chad Extends VAT Obligation to Digital Platforms, Effective January 2025

In January 2025, Chad’s Ministry of Finance and Budget announced a significant change in the country’s VAT policy. The new regulations extend the existing VAT on digital services to include digital platforms and marketplaces, making these platforms responsible for collecting and remitting 17.5% VAT on behalf of third-party sellers, including both goods and services.

Retroactive Application of VAT

This change is retroactive to January 1, 2025, and reflects Chad's ongoing efforts to regulate the digital economy. Since January 2023, Chad has been imposing VAT on electronic services, covering both domestic and foreign providers. Non-resident providers must appoint a local VAT representative to comply with the regulations.

Wide Range of Digital Services Affected

The VAT will apply to a wide range of digital services, such as streaming, online gaming, digital content access, subscription-based social media platforms, and e-commerce transactions. Service providers and intermediaries must determine whether VAT is due based on factors like the customer's billing address or IP location in Chad.

As Chad continues to streamline its digital tax landscape, these measures ensure that the government captures VAT on electronic transactions, improving the efficiency of tax collection while maintaining global alignment with digital service taxation.

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