Tax authorities across West Africa face mounting pressure to digitise and align their value added tax systems before a critical 2027 deadline, or risk deepening trade barriers that are already slowing economic integration across the region.
The West African Tax Administration Forum (WATAF) issued the warning at a high-level regional forum held on 21 April 2026 in Abidjan, organised by the African Development Bank (AfDB), which brought together tax administrators, policymakers, and development partners to examine VAT reforms and best practices across the continent.
During a panel discussion on VAT digitalisation, WATAF Executive Secretary Jules Tapsoba described digital transformation as a strategic necessity, pointing to technology-driven tools such as electronic invoicing, automated tax filings, and online taxpayer registration as essential for improving compliance, reducing fraud, and increasing administrative efficiency.
“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.
He called on member states to align their national VAT frameworks with the ECOWAS Directive on VAT Harmonisation, adopted in July 2023, ahead of a domestication deadline of January 2027, stressing that harmonisation combined with digitalisation is essential for facilitating a common market and ensuring fair competition.
Beyond system upgrades, Tapsoba outlined additional measures needed to improve VAT performance, including modernising VAT refund systems to cut delays, strengthening audit and verification mechanisms, improving customs valuation processes, and establishing joint audit teams between customs and domestic tax authorities. He also called for stronger data systems and regional databases to support evidence-based policymaking.
Eline Okudzeto, Chief Governance Officer at the AfDB, drew on lessons from East Africa, noting that while digital VAT reforms have advanced compliance in that region, gaps in coordination and system integration continue to pose challenges, underscoring that technology alone cannot resolve systemic inefficiencies without parallel governance and institutional reforms.
VAT remains one of the most significant sources of domestic revenue across the region, yet its potential continues to be constrained by large informal sectors, weak tax compliance culture, limited digital infrastructure, and poor coordination between customs and domestic tax administrations, all of which contribute to revenue leakages and liquidity pressures for cross-border businesses.
WATAF reaffirmed its commitment to supporting member states through technical assistance, capacity development, and knowledge sharing as governments across the region transition from reliance on border taxes toward more efficient domestic revenue systems, calling on governments and development partners to move beyond policy commitments to concrete implementation.
