The West African Tax Administration Forum has called for the accelerated digitalization of Value Added Tax (VAT) systems across the region, warning that inefficiencies in current frameworks are limiting revenue mobilization and slowing economic growth.
The call was made during a high-level regional forum in Abidjan, organized by the African Development Bank. The event brought together tax administrators, policymakers, and development partners to review reforms and best practices in VAT administration across Africa.
Speaking on the sidelines of a panel session titled “VAT Digitalization: Pathways, Challenges and Opportunities,” WATAF Executive Secretary, Jules Tapsoba, emphasized the urgency of adopting technology-driven tax systems across West Africa.
“Digitalization is the single most transformative lever for improving VAT performance across West Africa. Without it, we will continue to face leakages, inefficiencies, and limited compliance,” said Mr. Tapsoba.
He noted that while VAT remains a major source of domestic revenue in many West African countries, several structural challenges continue to hinder its effectiveness.
These include a large informal sector, weak tax culture, limited digital infrastructure, and poor coordination between customs and domestic tax authorities. According to him, these issues contribute to revenue leakages, delays in VAT refunds, and reduced liquidity for businesses.
Tapsoba acknowledged ongoing reforms in member states, including the rollout of online taxpayer registration systems, electronic invoicing, and automated tax filing and payment platforms. However, he stressed the need for greater coordination and harmonization of these initiatives across the region.
Also speaking at the forum, Eline Okudzeto, Chief Governance Officer at AfDB, pointed to lessons from East Africa, noting progress alongside persistent challenges in compliance, coordination, and system integration. She reaffirmed the bank’s commitment to supporting VAT reforms through technical assistance, dialogue, and capacity-building programmes.
Other speakers, including Emeka Nwankwo of the African Tax Administration Forum, Abou Ouattara Sié, and Darlingston Yahkor Talery of the Economic Community of West African States, echoed the importance of VAT in boosting domestic revenue while highlighting ongoing implementation challenges.
Tapsoba further urged member states to align their national VAT systems with the ECOWAS Directive on VAT harmonization adopted in July 2023, ahead of the January 2027 deadline for domestication. He said harmonization, alongside digitalization, would be key to promoting fair competition, facilitating a common market, and strengthening regional integration.
He also outlined measures to improve VAT performance, including modernizing refund systems to reduce delays, strengthening audit and verification processes to curb fraud, improving customs valuation systems, and enhancing collaboration between customs and domestic tax authorities through joint audits.
WATAF reaffirmed its commitment to supporting member states through technical assistance, capacity development, and knowledge sharing, as the region shifts from reliance on border taxes to more efficient domestic tax systems.
The forum called on governments and development partners to move beyond policy discussions to concrete implementation, stressing that timely action is essential to achieving fiscal sustainability in West Africa.
