Burkina Faso VAT Guide 2026

Overview — VAT in Burkina Faso

VAT in Burkina Faso is governed by the Code Général des Impôts and administered by the Direction Générale des Impôts (DGI). The tax applies to the supply of goods and services by registered persons in the course of business, and to imports. Burkina Faso operates a standard input-output VAT credit system where registered businesses can recover input VAT on business purchases. Businesses with annual turnover exceeding XOF 50,000,000 must register for VAT. Voluntary registration is permitted for businesses below the threshold. The tax year is the calendar year, and VAT returns are filed monthly or quarterly.

VAT Rate Structure

The VAT system in Burkina Faso has three rate categories:

• Standard rate — 18% on most goods and services
• Zero rate (0%) — exports of goods, international transport, and certain services rendered to non-residents
• Exempt supplies — basic foodstuffs, agricultural inputs, educational services, medical services, financial services (interest income, insurance), and residential property rent

Exempt supplies do not attract VAT but also do not allow input VAT recovery. Zero-rated supplies allow input VAT recovery while the output is taxed at 0%.

Registration Threshold & Compliance

Businesses with annual turnover of XOF 50,000,000 or more must register for VAT with DGI. The application is submitted through DGI's online portal. Once registered, the business issues VAT invoices showing the VAT amount separately. VAT-registered businesses must file returns monthly (by the 15th of the following month) or quarterly. The VAT return includes output VAT, input VAT credits, and the net payable or refundable amount. Late filing attracts penalties and interest on unpaid tax.

Input VAT Recovery

VAT-registered businesses can claim input VAT on purchases used for taxable supplies. Input VAT is recovered by offsetting against output VAT. If input VAT exceeds output VAT in a period, the excess may be carried forward or refunded subject to DGI approval. Certain expenses have restricted input VAT recovery including passenger vehicles, entertainment, and accommodation. Proper VAT invoices are required to support input VAT claims.

Excise Duties

In addition to VAT, Burkina Faso imposes excise duties (droits d'accise) on specific products:

• Alcohol — rates vary by type (beer, spirits, wine)
• Tobacco — excise of approximately 30–40%
• Petroleum products — specific excise per litre
• Soft drinks — excise on sugary beverages

Excise duties are collected by customs at importation or by DGI for locally manufactured goods. Rates are reviewed periodically in the annual Finance Law.

FAQs

Do I need to charge VAT if my turnover is below XOF 50,000,000?

No, registration is only compulsory if annual turnover meets or exceeds XOF 50,000,000. Businesses below the threshold may voluntarily register. Unregistered businesses must not charge VAT on their invoices.

Can I recover input VAT on all business purchases?

Input VAT is recoverable on purchases used for taxable supplies. Restrictions apply to passenger vehicles, entertainment, and accommodation. Proper VAT invoices are required to support claims.

Are exports really zero-rated?

Yes, exports of goods from Burkina Faso are zero-rated for VAT purposes, meaning no VAT is charged on the export sale, and the exporter can recover input VAT incurred in producing the exported goods.

Disclaimer

This guide provides general information about Burkinabé VAT for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified tax advisor or the Direction Générale des Impôts for advice specific to your situation. InvestmentKit does not provide tax advice.