With the meteoric rise of e-commerce in Africa, Burkina Faso is seeking to integrate this growing sector into its tax system. However, the challenge is significant: how to effectively tax a rapidly evolving digital ecosystem, while promoting its development?
Online commerce is experiencing strong growth in the country, driven by an increase in Internet penetration and the increased accessibility of smartphones. Local and international e-commerce platforms are gaining popularity, boosting digital transactions. However, these activities often escape traditional tax mechanisms, depriving the state of valuable resources.
Faced with this situation, the Burkinabe government is exploring ways to regulate and tax these activities. The establishment of a value added tax (VAT) applicable to digital platforms could be a first step. Inspired by models adopted in other African countries such as Nigeria or Kenya, Burkina Faso is considering solutions adapted to its socio-economic context. However, obstacles remain, notably the lack of reliable data on sector players and transaction volumes.
To avoid hampering the adoption of e-commerce, the government could also opt for progressive tax policies. Exemptions or reduced rates for small local businesses could boost competition while supporting the digital economy. Furthermore, strengthening digital infrastructure and raising awareness among local stakeholders remains essential to establish fair and sustainable taxation.
While many West African countries are considering similar regulations, Burkina Faso’s success may depend on its ability to collaborate with companies in the sector and leverage regional expertise. Taxation of e-commerce, although complex, could offer a solution to broaden the tax base while supporting the country’s digital transformation.
