Understanding VAT Across Africa: A Complete Guide

September 26, 2026

What Is VAT and Why Does It Matter?

Value Added Tax (VAT) is one of the most common forms of taxation across Africa. Almost every African country has implemented VAT as a key revenue source. However, the rates, thresholds, and exemptions vary widely from country to country.

Understanding how VAT works in your country — and in the countries you do business with — is essential for pricing, compliance, and profitability.

VAT Rates by Country

Tanzania — 18% VAT

Tanzania charges VAT at 18%, administered by the Tanzania Revenue Authority (TRA). Most goods and services are subject to VAT, with exemptions for basic food items and medical supplies.

Use our VAT Calculator for Tanzania to instantly add or remove VAT from any amount.

South Africa — 15% VAT

South Africa has a VAT rate of 15%, collected by SARS. It was increased from 14% to 15% in April 2018. Zero-rated items include basic foodstuffs like brown bread, milk, eggs, and vegetables.

Try the South Africa VAT Calculator for quick, accurate results.

Kenya — 16% VAT

Kenya applies VAT at 16%, managed by KRA. Kenya also has a digital services tax for non-resident digital marketplace providers. Understanding your VAT obligations is important if you earn income from digital services.

Nigeria — 7.5% VAT

Nigeria charges VAT at 7.5%, which is among the lowest in Africa. The FIRS administers VAT collection, and there are ongoing discussions about potential increases to boost government revenue.

Ghana — 15% VAT (Plus Levies)

Ghana has a complex consumption tax structure. The base VAT rate is 15%, but additional levies — including the COVID-19 Health Recovery Levy and the GETFund levy — can push the effective rate higher.

Egypt — 14% VAT

Egypt charges VAT at 14%, administered by the Egyptian Tax Authority. Tourism and export services are zero-rated, which is important for businesses in these sectors.

Tips for Cross-Border Business

When doing business across African borders, keep these in mind:

  • Register for VAT in each country where you exceed the registration threshold
  • Understand which goods and services are exempt or zero-rated
  • Keep proper records — most African revenue authorities are increasing digital audits
  • Use tools like our VAT calculators to ensure pricing accuracy

Related Tools

This article is for general information only and is not financial, tax or legal advice. Rates, thresholds and regulations change — always confirm current figures with the relevant revenue authority or a qualified advisor before making a financial decision.