VAT and Customs: Guide to Africa-Europe Trade

Trade between Africa and Europe means navigating a fiscal maze of 72 countries, each with their own VAT rules, customs duties and documentation requirements. For businesses, it's an administrative nightmare.

In Europe, the OSS (One-Stop Shop) regime simplifies VAT collection for intra-EU distance sales, but doesn't cover imports from Africa. The IOSS regime applies to shipments under €150, but beyond that, standard customs procedures resume.

In Africa, the situation is even more complex. The CFA zone (14 countries) has its own rules, the EAC (East African Community) another harmonization, and North African countries operate differently. VAT rates range from 0% to 20% depending on countries and products.

HS (Harmonized System) codes are the cornerstone of customs classification. Correctly classifying products is crucial: an error can lead to surcharges, delays or goods seizure. AI-powered classification automation is becoming indispensable.

PEPPOL electronic invoicing is gradually becoming mandatory in Europe for B2B transactions. Belgium and France are making this standard obligatory for public procurement, with private sector extension underway. African businesses exporting to Europe must prepare.

SaaS tax compliance solutions automate tax calculation, customs document generation and reporting. They allow businesses to focus on their core business rather than administrative paperwork.