The verdict in three sentences
A freelancer or referral agent must declare their commissions: they are taxable even when paid to a mobile money wallet. The right regime depends on turnover: a simplified / flat-rate regime for small volumes, the actual regime above the thresholds, with VAT liability once you cross the floor. The costliest mistake: collecting without invoicing, which strips you of deductible expenses and exposes you to a reassessment.
The simplified tax regimes
| Regime | Target | Tax base | Obligations |
|---|---|---|---|
| Flat-rate / simplified | Small turnover | Flat rate or % of revenue | Simplified return |
| Simplified actual | Mid turnover | Actual profit | Light bookkeeping |
| Normal actual | High turnover | Actual profit | Full bookkeeping + VAT |
Order of magnitude 2026: in the UEMOA zone, a single flat-rate contribution targets small activities; above a certain turnover threshold you switch to the actual regime with VAT at 18%.
Thresholds and rates to know
| Item | Order of magnitude 2026 | Note |
|---|---|---|
| VAT threshold (services) | ~50M FCFA turnover | Above: VAT mandatory |
| VAT rate | 18% | Senegal / UEMOA |
| Flat-rate (small activity) | Rate by turnover | Simplified regime |
| Advance / withholding | Variable | By income type |
| Filing frequency | Monthly or annual | By regime |
Confirm with your tax office: exact thresholds vary by country and year.
Invoicing your commissions properly
A referral commission is invoiced like a service. A compliant invoice carries: tax ID / registration number, net amount, VAT where applicable, legal mentions. Without an invoice, the agency cannot pay you cleanly and you cannot deduct expenses (transport, phone, advertising).
Mini case study
Bineta, a Kolonell referral partner in Dakar, collects commissions in 2026: 180 000 FCFA on a Premium showcase (15%), 240 000 FCFA on an e-commerce (12%), plus recurring revenue. Her annual turnover of about 3 500 000 FCFA keeps her under the simplified regime, below the VAT threshold. By invoicing each commission and deducting 400 000 FCFA of real expenses, she lowers her taxable base and stays fully compliant.
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FAQ
Must I declare commissions paid in mobile money?
Yes. The payment form (Wave, Orange Money, cash) changes nothing: all business income is taxable and must be declared. A mobile money receipt also leaves a trace.
When do I become VAT-liable?
When turnover exceeds the threshold (order of magnitude 2026: ~50M FCFA for services in the UEMOA zone). Below it, the simplified regime applies and you do not charge VAT.
What is the VAT rate?
18% in the UEMOA zone. If liable, you charge it to clients and remit it, while recovering VAT on your business purchases.
Which expenses can I deduct?
Under the actual regime: transport, phone, internet, advertising, equipment, subcontracting, as long as they serve the business and are backed by invoices. That is why you must invoice everything and keep records.
How are Kolonell referral commissions taxed?
They are service income to be declared. You invoice Kolonell (15% + 5% recurring on showcase, 12% e-commerce, 10% marketplace, 8% institutional) and include these amounts in your turnover under your regime.
Let's talk about your project. Become a Kolonell referral partner and invoice your commissions in full compliance. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
