Understanding how Value Added Tax (VAT) is applied in the Democratic Republic of Congo


Almost unknown in 1960, the value added tax (VAT) is now found in several countries, raises around 20 percent of the world’s tax revenue, and has been the centerpiece of tax reform in many developing countries including the Democratic Republic of Congo. In August 2010, The President of the Republic signed a decree replacing the sales tax “ Impot sur le chiffre d’Affaires” (ICA) with a value-added tax (VAT), which was introduced on January 1, 2012.

Notwithstanding its advantages, it is worth noting that VAT is a considerably complex tax to administer compared with sales tax. With the size of the DRC and the lack of infrastructures, it may be difficult to apply to some companies and other informal businesses due to difficulties of record keeping and its coverage in some areas and services sector may be limited.


LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© JOSEPH YAV KATSHUNG | Attorney Advertising

Written by:



Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.