VATupdate

VAT rates in Tunisia

Quick overview

Standard Rate Reduced Rate Other Rates
19% 7% & 13% Exempt

The local name for VAT in Tunisia is Taxe sur la Valeur Ajoutée (TVA).

There are basically 3 VAT rates in Tunisia:

  • Standard VAT rate is 19%
  • Reduced VAT rate is  7% & 13%

Recent developments

For more information about (recent) rate change developments in Tunisia, please click HERE.

Standard rate: 19%

This rate applies for all transactions that take place in Tunisia, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).

Reduced rate:  7% & 13%

Examples of goods and services taxable at 7%

  • Transport of goods
  • Activities carried out by doctors and analytical laboratories
  • Materials and supplies for pharmaceutical products
  • Fixed internet services in homes

Examples of goods and services taxable at 13%

  • Services rendered by lawyers, tax advisors and other experts.
  • Sales of low-voltage electricity intended for domestic consumption, and the sale of mediumand low-voltage electricity used from the functioning of water pumping equipment for agricultural irrigation.
  • Sales of buildings constructed for the exclusive use of housing by real estate developers for the profit of private persons or by public real estate developers (the rate of 13% will increase to 19% effective 1 January 2024). A

 

Exempt supplies 

Examples of exempt supplies without the right to deduct VAT

  • Banking interest
  • Maritime air transport
  • Food products (for example, milk and flour)

Examples of supplies outside the VAT scope

  • Agriculture

 

Option to tax for exempt supplies. According to the tax legislation in force, there is a possibility to opt for the VAT regime regarding services, goods and activities exempt for VAT or positioned out of the scope of VAT.

 

A global VAT/GST rate overview can be found here (note this is a work in progress).

This post was last updated on September 28, 2021.

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