Pricewaterhouse Coopers (PwC) has released the seventh edition of its Africa VAT Guide dubbed Moving towards a united Africa, comprising updates on VAT regimes in 41 African countries.

The Africa VAT Guide highlights compliance-related initiatives such as the adoption of real-time VAT reporting and data analysis by various tax administrations to support their collections.

This edition is focused on Africa’s journey into the future and how different countries’ VAT regimes help to shape that journey. The guide has been compiled by PwC indirect tax experts with hands-on experience in each of the 41 countries represented in the report.

“The impact of the COVID-19 pandemic and other developments on the continent have caused a rapid shift to virtual, remote operations and new ways of working. Through this publication, we’re looking ahead and preparing for the future. This report includes insight on the emerging technology ecosystem in Africa – as well as other, more traditional aspects of VAT regimes in each country,” said Job Kabochi, PwC Africa’s Indirect Tax Leader.

Additionally, the African Continental Free Trade Area agreement (AfCFTA) came into force on 1st January, 2021 and offers opportunities for economic recovery and the development of a powerful economic trading bloc.

“AfCFTA has helped to actualize the long-standing intention of increasing trade among African countries. As cross-border trade ramps up, we expect greater attention to be paid to indirect taxes such as customs duties, VAT and excise duty. Accordingly, we have given special attention to the taxation of cross-border supply of both goods and services in this edition of the Africa VAT Guide,” added Kabochi.

The Guide also revealed that African governments are prioritizing enhanced compliance as a way to address tax revenue shortfalls and protect the existing tax base.