Digital platforms such as Google, Apple, Facebook and Amazon, will have the obligation to levy the Value Added Tax, up to 19.25% , on all the advertisements made by Cameroonian companies on their various media. This tax will be paid into the coffers of the State of Cameroon.
This provision is contained in article 127, paragraph 15 of the finance law for the current fiscal year. It provides that: “are taxable, transactions inherent in the sale of goods and the provision of services carried out on Cameroonian territory or through foreign or local e-commerce platforms.”
To break it down, “when a company X based in Cameroon or under Cameroonian law buys advertising space from Google, once the invoice has been paid, Google is required to withdraw 19.25% of the amount paid by the company. company to donate them to the State. This is also valid for the Cameroonian citizen Y who makes a purchase on Apple Music for example. When it pays its bill, the Apple company must take 19.25% and transfer it to the public treasury. “
Thus, “in addition to the fact that this provision is provided for in the 2020 finance law, a source at the DGI informs that through this measure, Cameroon is part of a global movement inspired by the work of the Organization of Economic Cooperation and Development (OECD) and other international organizations which work to improve the tax compliance of these multinationals which have the reputation of not paying taxes in the countries in which they offer services.”
But, this decision is the result of discussions between the Cameroonian authorities and the heads of these multinationals. The law comes into force on October 1 because “it was necessary to give time to these companies, so that they change their modes of perception and inform their customers of the coming changes”,