The West African Tax Administration Forum (WATAF) has called for the accelerated digitalisation of Value Added Tax (VAT) systems across West Africa, warning that inefficiencies in current frameworks continue to limit revenue mobilisation and economic growth in the region.
The call was made at a high-level regional forum organised by the African Development Bank (AfDB).
The Manager, Communication & IT, West African Tax Administration Forum (WATAF), Danicius Kaihenneh Sengbeh, in a statement revealed that the meeting brought together tax administrators, policymakers, and development partners to examine reforms and share best practices in VAT administration across Africa.
Speaking during a panel session on “VAT Digitalisation: Pathways, Challenges and Opportunities,” WATAF Executive Secretary, Jules Tapsoba, described digital transformation as critical to strengthening tax systems.
He noted that digitalisation remains the most effective tool for improving VAT performance, enhancing compliance, reducing fraud, and boosting administrative efficiency across West African economies.
“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,” he said.
Despite VAT being a major source of domestic revenue for many countries in the region, Tapsoba identified persistent challenges including a large informal sector, weak tax culture, limited digital infrastructure, and poor coordination between customs and domestic tax authorities.
These issues, he said, continue to result in revenue leakages, delayed VAT refunds, and reduced liquidity for businesses.
He, however, acknowledged ongoing reforms in several countries, including the rollout of online taxpayer registration systems, electronic invoicing, and automated tax filing and payment platforms.
He stressed the need for these initiatives to be expanded and harmonised 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, ahead of the January 2027 domestication deadline.
He noted that harmonisation, alongside digitalisation, is essential for promoting fair competition, facilitating trade, and deepening regional economic integration.
He also outlined key measures to improve VAT performance, including modernising VAT refund systems, strengthening audit and verification processes, enhancing customs valuation, and establishing joint audit teams between customs and tax authorities.
Also speaking, Chief Governance Officer at the AfDB, Eline Okudzeto, highlighted lessons from East Africa, noting progress in VAT reforms while pointing to ongoing gaps in compliance, coordination, and system integration.
She reaffirmed the Bank’s commitment to supporting member countries through technical assistance and capacity-building programmes.
WATAF reaffirmed its commitment to supporting member states through technical assistance, capacity development, and knowledge sharing, as governments in the region continue the transition from reliance on border taxes to more efficient domestic tax systems.
The Forum called on governments and development partners to move beyond policy commitments to concrete implementation, stressing that timely action is critical to achieving sustainable fiscal reforms across West Africa.