Frequently asked questions about Cameroon VAT
What is VAT?
VAT is the abbreviation of Value Added Tax and is in general due when goods and/or services are sold. It is generally chargeable on all taxable goods and services supplied (i.e., consumed or otherwise utilized) in Cameroon. It is a consumption tax because it is ultimately borne by the final consumer.
Who must pay VAT?
Generally, VAT is invoiced by the supplier that is selling goods or services and collected from the customer. Subsequently, the supplier reports and remits the collected VAT to the tax authorities through monthly VAT filings.
Why am I being charged VAT?
Video conferencing services and telecommunication (in the form of electronic communication services) supplied by Zoom fall within the rules concerning electronically supplied services by non-resident service providers to businesses (B2B) and consumers (B2C) in Cameroon as per the 2020 Finance Law. As such, Zoom is required to charge VAT on all supplies to customers in Cameroon.
What is a Single Identification Number (NIU)?
A Single Identification Number (NIU) is composed of 14 characters and is issued by the Directorate General of Taxation to identify taxpayers in Cameroon. The first character (“M” for legal persons or “P” for natural persons) and the last character are letters of the alphabet, the twelve characters between the two letters are numbers.
Where you have provided your NIU to Zoom, this will show on invoices issued to you by Zoom.
How do I enter my NIU?
Note: Starting July 17, 2023, certain account owners and admins will notice a dedicated Plans and Billing section within their ADMIN menu.
To enter your NIU, please follow these steps:
- Sign in to the Zoom web portal.
- In the navigation menu, click Account Management then Billing.
- Click the Billing Information tab.
- Under Sold To Contact, click Edit to edit the NIU (which appears after the Sold To Contact address fields).
- Enter your NIU.
- Click Save Changes.
Does Zoom have a NIU?
Yes. Zoom is registered for VAT in Cameroon as a non-resident supplier of electronically supplied services. Zoom’s NIU will be shown on the invoice it issues to you.
How is Zoom determining which customers Cameroon VAT applies to?
Zoom will apply VAT if the location of the “Sold To” contact address entered by the customer is in Cameroon. This information is subject to cross-referencing against other data to verify that the ‘Sold to’ country is accurate. It is your responsibility as a customer to ensure that your ‘Sold to’ address is accurate.
Is there a minimum threshold purchase amount before VAT is applied?
No, all supplies of electronically supplied services to customers in Cameroon are subject to Cameroon VAT.
Are there any special exemptions applicable for charities or other organizations under which VAT may not be charged?
No, all supplies of electronically supplied services made to customers in Cameroon are subject to VAT.
Will VAT apply even if a Cameroon company provides a valid NIU to Zoom?
Yes, VAT applies to all the supplies that Zoom makes to customers in Cameroon regardless of whether the customer is a business (B2B) or non-business (B2C) customer.
Are there any VAT obligations for me as a customer?
No, the customer in principle has no VAT obligations. If you are registered for VAT in Cameroon and you want to claim the VAT charged to you by Zoom, as a minimum, you should ensure to keep a copy of Zoom’s invoice for your records.
Every customer is unique and so are their specific tax circumstances. The above-stated information should not be considered as tax advice, but as a general overview of relevant tax rules in Cameroon. Zoom cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.
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