African countries work on updating VAT regimes for the digital economy – Tech Giants failed to collect VAT

A report published by TaxWatch UK found that tech giants such as Facebook, Google and Microsoft failed to collect VAT on their African sales despite having local offices in those countries.

This is a breach of local VAT laws that require non-resident companies to register for VAT, thereby resulting in large sums of tax going uncollected. This is significant as VAT accounts for around 30% of government revenues for African countries.

Source Proquest



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