Cameroon Rolls Out Real-Time VAT Withholding on Fuel and Butane Gas Supplies

Summary 

• Cameroon’s Directorate General of Taxation clarified real-time VAT collection on petroleum products and commercial butane gas in Circular No. 00000666/MINFI/DGI of 14 July 2026, applying to transactions from 1 January 2026. 

• VAT (19.25%) becomes chargeable on withdrawal from SCDP depots, on direct SONARA deliveries or on first self-supply for fuel, and on delivery for butane gas, with SCDP or SONARA acting as statutory collector and remitting within 45 days. 

• Only a system-generated electronic withholding certificate entitles the actual taxpayer to deduct or reclaim the VAT; transitional instalments cover January–October 2026 withdrawals. 

Extended article 

Cameroon’s Directorate General of Taxation (DGI) has clarified how VAT is collected, paid and recovered on petroleum products and commercial butane gas, implementing Order No. 00000449/MINFI of 22 May 2026. The reform does not change the VAT rate or the scope of taxable transactions; instead, it fundamentally changes the timing and administration of collection by introducing a real-time mechanism supported by designated collectors and digital reporting. 

VAT becomes chargeable when petroleum products are withdrawn from depots operated by the Cameroon Petroleum Depots Company (SCDP), delivered directly by the National Refining Company (SONARA), or first used in a self-supply. For butane gas, it becomes chargeable on delivery by a producer or distributor. The tax is imposed at the overall rate of 19.25% on 10 price components for petroleum products and 6 for butane gas. The circular distinguishes the debtor, the actual taxpayer (who bears and may deduct the VAT) and the statutory collector (who computes, withholds and remits). 

Critically, VAT deduction or reclaim is only available on the basis of an electronically generated withholding certificate issued through the DGI’s system; certificates issued outside the prescribed system do not support deduction. Statutory collectors must remit within 45 days into a dedicated Treasury account. Transitional rules require VAT on May 2026 withdrawals to have been paid by 15 July 2026, with January–April 2026 amounts payable in six monthly instalments from 15 July to 15 December 2026. 

Sources: Cameroon DGI (official website); 4M Legal & Tax – real-time VAT reform analysis.

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