Tracking and taxing Cross-Border Digital Transactions: The Case of VAT in Senegal

<p dir="ltr">The global expansion of digital services – from streaming, e-commerce, and software, to online education – has created new tax challenges, particularly for developing countries. In Africa, governments have responded by introducing VAT frameworks targeting non-resident suppliers of digital services. These reforms aim to curb revenue leakage, level the playing field for domestic businesses, and adapt tax systems to the digital age.</p><p dir="ltr">Yet across the continent, there are significant disparities in the design and implementation of reforms. This research compares legal and administrative models across African countries. It further uses Senegal as a case study to analyse both the progress made and the challenges encountered during implementation in light of international good practices. Drawing on international benchmarks from the 2023 VAT Digital Toolkit for Africa, it shows how design choices, e.g., digital registration portals and the absence of registration thresholds, may shape compliance outcomes and administrative burdens.</p><p dir="ltr">Summary of ICTD African Tax Administration Paper 42.</p>