Group Urges Faster VAT digitalisation To Boost Revenue, Curb Leakages

The West African Tax Administration Forum has called for the accelerated digitalisation of Value Added Tax (VAT) systems across West Africa, warning that inefficiencies in current frameworks continue to constrain revenue mobilisation and economic growth.

The call was made during a high-level regional forum held on April 21, 2026, in Abidjan. The event was organised by the African Development Bank and brought together tax administrators, policymakers, and development partners to examine reforms and best practices in VAT administration across the continent.

Speaking during a panel session on “VAT Digitalisation: Pathways, Challenges and Opportunities,” WATAF Executive Secretary, Jules Tapsoba, said digital transformation has become a strategic imperative for improving compliance, reducing fraud, and enhancing efficiency in tax systems across the region.

“Digitalisation 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,” Tapsoba said.

VAT remains a major source of domestic revenue in many West African countries. However, structural challenges continue to limit its full potential. Tapsoba identified key constraints to include a large informal sector, weak tax culture, limited digital infrastructure, and poor coordination between customs and domestic tax administrations.

According to him, these gaps contribute to revenue leakages, delays in VAT credit reimbursements, and reduced liquidity for businesses.

He noted that ongoing reforms in several member states are already demonstrating the benefits of technology-driven tax systems. These include the expansion of online taxpayer registration, the introduction of electronic invoicing, and the automation of tax declaration and payment processes.

Despite the progress, he stressed the need for reforms to be scaled up in a more coordinated and harmonised manner across the region.

Also speaking, Eline Okudzeto highlighted lessons from East Africa. She noted that while progress has been made, challenges persist in compliance, coordination, and system integration.

Okudzeto emphasised the importance of cross-border VAT cooperation and reaffirmed the AfDB’s role in supporting dialogue, technical capacity building, and country-level reform programmes.

Other speakers at the forum included Emeka Nwankwo of the African Tax Administration Forum, Abou Ouattara Sié, and Darlingston Yahkor Talery of the Economic Community of West African States.

They collectively underscored the critical role of VAT in domestic revenue mobilisation, while outlining ongoing challenges and future prospects for strengthening VAT systems across the region.

Tapsoba further urged member states to align their national VAT frameworks with the ECOWAS Directive on VAT Harmonisation adopted in July 2023, which has a domestication deadline of January 2027.

He stressed that harmonisation, alongside digitalisation, would be critical to facilitating a common market, ensuring fair competition, and strengthening regional economic integration.

Beyond digitalisation, he outlined additional measures needed to improve VAT performance. These include modernising VAT refund systems to reduce delays, strengthening audit and verification mechanisms to curb fraudulent claims, enhancing customs valuation processes, and operationalising joint audit teams between customs and domestic tax administrations.

He also emphasised the importance of building robust data systems and regional databases to support evidence-based policymaking, as well as strengthening the capacity of tax officials and promoting greater public awareness of tax compliance.

WATAF reaffirmed its commitment to supporting member states through technical assistance, capacity development, and knowledge sharing.

The forum also called on governments and development partners to move from policy commitments to implementation, stressing that timely action would be crucial to achieving the region’s fiscal transition from reliance on border taxes to more efficient domestic tax systems.