VAT and tax obligations for digital freelancers: what you must declare

The verdict in three sentences

A digital freelancer is not outside the tax system: above a turnover threshold, you must charge and remit VAT. In Senegal the rate is 18 % with a threshold around 50,000,000 FCFA; in Nigeria VAT is 7.5 % above NGN 25 million. Below that, simplified regimes such as Senegal's CGU replace VAT with a flat tax that is far lighter to manage.

VAT thresholds and regimes in three countries

The first thing to know is whether you cross the registration threshold. Below it you do not charge VAT; above it, VAT becomes mandatory with periodic filings. Here are the 2026 reference points.

Below the threshold, a Senegalese freelancer often falls under the Contribution Globale Unique (CGU): a single flat tax that replaces VAT, business licence and income tax, much simpler than a real regime.

Penalties and deductible expenses

Filing late is costly: authorities apply penalties and late interest. Conversely, documenting expenses well legally lowers your tax. Here are the points to master.

Expenses tied to your activity (computer, SaaS subscriptions, website hosting, business internet) are deductible if backed by an invoice in your name. No record, no deduction.

Mini case study

Aminata, a freelance web writer in Dakar, earns 18,000,000 FCFA of turnover a year, well below the VAT threshold. She opts for the CGU: she charges no VAT, pays a simplified flat tax, and still deducts her software subscriptions and website hosting, about 600,000 FCFA/year, from her result. The outcome: light bookkeeping, no monthly VAT filing, and a reduced taxable base thanks to her retained records.

FAQ

At what turnover must I charge VAT in Senegal? The 2026 order of magnitude places the registration threshold around 50,000,000 FCFA of turnover. Below it, the Contribution Globale Unique replaces VAT with a simpler flat tax.

What is the CGU? The Contribution Globale Unique is a Senegalese regime that bundles VAT, business licence and income tax into one flat tax for small taxpayers, greatly lightening administration.

What is Nigeria's VAT rate? It is 7.5 %, with a registration threshold around NGN 25 million of annual turnover. Below that, small businesses may be exempt.

Which expenses can I deduct? Any activity-related expense backed by an invoice in your name: computer, software and SaaS subscriptions, website hosting, business internet. Without a record, the deduction is refused.

What is the risk of late filing? Penalties and late interest on the tax due, plus a reassessment risk if you failed to charge VAT. Filing on time is always cheaper.

Let's talk about your project. Compliant, automated invoicing spares you penalties and oversights: let's discuss your tools. WhatsApp +221 77 596 93 33.