By Oluwakemi Kindness
The West African Tax Administration Forum (WATAF) has called for urgent digital reform of Value Added Tax (VAT) systems across West Africa, warning that inefficiencies are undermining revenue collection and slowing economic growth.
The call was made at a regional forum held on April 21, 2026, in Abidjan, organised by the African Development Bank (AfDB), and brought together tax officials, policymakers, and development partners.
In a statement issued on Wednesday by Danicius Sengbeh, Manager of Communication & IT at WATAF, the forum quoted Executive Secretary Jules Tapsoba as saying that digital tools remain essential to improving tax administration and reducing revenue leakages.
“Digitalization is the single most transformative lever for improving VAT performance across West Africa,” Tapsoba said. “Without it, we will continue to face leakages, inefficiencies, and limited compliance.”
Why VAT Reform Matters
VAT remains a critical source of government revenue across West Africa, but its effectiveness is weakened by several structural challenges, including a large informal sector, weak tax compliance culture, limited digital infrastructure, and poor coordination between customs and tax authorities.
These gaps have contributed to revenue losses, delays in VAT refunds, and reduced liquidity for businesses operating in the region.
Progress in Some Countries, But Gaps Remain
Tapsoba noted that while some countries have begun implementing reforms such as electronic invoicing, online taxpayer registration, and automated tax filing and payment systems, progress remains uneven across the region.
He stressed the need to scale up successful reforms to ensure wider regional impact.
Regional Push for Harmonization
The AfDB’s Chief Governance Officer, Eline Okudzeto, said East Africa offers useful lessons in tax reform, although challenges in compliance and system integration still persist.
She reaffirmed the bank’s commitment to supporting tax modernization efforts through technical assistance and capacity building.
Other speakers, including Emeka Nwankwo of the African Tax Administration Forum (ATAF) and Darlingston Yahkor Talery of the Economic Community of West African States (ECOWAS), also emphasized the need to strengthen VAT systems across the region.
WATAF urged member states to align with the ECOWAS VAT harmonization directive ahead of the January 2027 deadline.
Key Reforms Highlighted
The forum outlined key reforms needed to improve VAT performance across West Africa, including faster VAT refund processes, stronger audit and verification systems, improved customs valuation, joint audits between tax and customs authorities, enhanced data systems, and increased taxpayer awareness.
WATAF said it will continue to support member states through technical assistance and knowledge sharing, while urging governments to move from policy discussions to concrete implementation.
