being taxed. If a service is taxed in the jurisdiction under the “use and enjoyment” provisions, a non-established supplier of the service may be required to register for VAT in every jurisdiction where it has customers that are not taxable persons. In Guinea, no services are subject to the “use and enjoyment” provisions.
Transfer of a going concern. Transfer of going concern rules do not apply in Guinea. As such, VAT applies to all sales of a business or part of a business capable of separate operation including assets.
Transactions between related parties. In Guinea, there are no specific rules that indicate the value for VAT purposes for transactions between related parties. However, Guinean legislation provides that companies are required to maintain documentation to justify the transfer pricing methods used.
C. Who is liable
Individuals or legal entities that usually or occasionally realize taxable operations with an annual turnover equal or superior to Guinean franc (GNF) 1 billion (approx. USD105,000) for the sales of goods and supplies of services are subject to VAT. A taxable person that reaches this threshold must register itself for VAT purposes.
Exemption from registration. In Guinea, the following are exempted from VAT registration:
• Entity or person with a turnover of less than GNF1 billion during the previous year
• Entity or person who, having realized a turnover equal to or greater than GNF1 billion, has recorded a decrease in their GNF1 billion and has recorded a decline in their turnover below this threshold for two consecutive years.
Voluntary registration and small businesses. When companies’ turnover does not reach the mandatory registration threshold, companies may, with authorization from the Head of the Tax Office, place themselves in the scope of VAT if their annual turnover, or that their investments made or estimated for the current fiscal year reach a turnover of GNF500 million.
Group registration. Group VAT registration is not allowed in Guinea.
Fixed establishment. In Guinea there is no legal definition of a fixed establishment for VAT purposes. However, the Guinean tax code specifies the conditions necessary to determine the presence of a permanent establishment (PE) regarding corporate income tax in Guinea (which also applies for VAT). The presence of a PE, within the framework of the usual exercise of an activity, is characterized by two noncumulative criteria as follows:
• The exercise of its activities through a place of business
• Carrying out transactions in Guinea through a dependent agent
A dependent agent is an agent who acts on behalf of a resident taxable person for tax purposes in another state and who has powers in Guinea that it usually exercises there allowing it to conclude contracts in the name of the taxable person or without having these powers usually operates in Guinea a stock of goods or merchandise on behalf of the taxable person.
Moreover, a set of criteria (beam of indices) makes it possible to qualify the existence of a PE (i.e., fixed installation, exercise of activities, permanence of the installation). So, the law provides that the following may constitute a PE:
• A place of management
• A branch
• An office
• A factory
• A workshop
There are no other specific e-commerce rules for imported goods in Guinea.
Online marketplaces and platforms. The tax code outlines provisions regarding a regime for services performed via e-commerce platforms. The regime outlines that, when a service is provided via an e-commerce platform, whether or not the provider is established in Guinea, where the service provider is in contact with the customer, whether or not they are a taxable person (i.e., for both B2B and B2C supplies), and the customer is established in Guinea, the platform is deemed to act as both purchaser and seller of the service provided, even if it acts as a transparent intermediary. This means that the platform and service providers are jointly and severally liable for the VAT due on the supply made. The platform is therefore required to register and account for VAT in Guinea. However, where the supplier is not established in Guinea and the platform is established in Guinea, the latter is liable for the VAT on this transaction through the reverse-charge mechanism (see the Reverse charge subsection above).
Registration procedures. The application for the VAT registration should be made by a written request accompanied by a copy of the following documents: The opening balance sheet or copy of its financial statements, company’s articles of association, the last three-monthly tax returns and corresponding receipts of payment, the tax registration certificate, the registration certificate with the Trade Register and the proof of the company’s location or address. Moreover, it must prove to have realized during the previous or current year a turnover of at least GNF500 million.
Deregistration. Taxable persons must notify to the tax administration the termination of their activities and proceed with the cancellation of their tax registration number in the register of the tax office after compliance of the legal formalities.
Changes to VAT registration details. The taxable person that modifies its registration details (name, address, business activity, etc.) must report it in writing (paper) to the tax administration.
D. Rates
The term “taxable supplies” refers to supplies of goods and services that are liable to a VAT rate, including the zero-rate.
The VAT rates are:
• Standard rate: 18%
• Zero-rate: 0%
The standard rate of VAT applies to all supplies of goods or services unless a specific measure provides for the zero rate or an exemption.
Examples of goods and services taxable at 0%
• Exports
• International transport of goods and persons from or to foreign countries
• Certain operations involving commercial vessels
• Operations on aircraft used by airlines whose services to or from foreign countries represent at least 80% of the services they operate (i.e., deliveries, repairs, alterations, maintenance, charters and rentals of such aircraft, etc.)
The term “exempt” refers to supplies of goods and services that are not liable to tax and that do not qualify for input tax deduction.
Examples of exempt supplies of goods and services
• Sales and imports of stamps
• Operations within the scope of the tax on financial activities
• Operations within the scope of the tax on insurance• Operations relating to the transmission of real properties and tangible personal properties subject to registration fees, except from the operations of the same nature conducted by the real estate merchants of goods or those of leasing
• Sale of used goods
• Transfers of shares, stocks and bonds
• Rental of buildings for residential use excluding, among others, accommodation operations carried out within the hotel sector.
• Sales, imports, prints and compositions of periodical publications printed whatever their names (newspaper or magazine) mainly composed of text relating to news and information of general interest excluding the advertising incomes
• Services or operations of a social, educational, sporting, cultural, philanthropic or religious character delivered by non-lucrative organizations of which the management is voluntary and selfless. However, the operations conducted by these organizations are taxable when they are in a competitive sector
• Certain foodstuffs:
– Rice – Wheat
– Flour and additives used in its production
– Bread
– Nutritious oils
– Palm oil
– Non-frozen fish
– Heavy fuel oil used in boilers for the production of electricity
– Inputs for the production of fertilizers and the packaging used for their conditioning
– The social slice of water and electricity consumption charged to households
– Sales by their authors of original works of art
• Pharmaceutical products
• Fertilizers and pesticides
• Books and school supplies
• Sales of used goods made by the people who have used them for the needs of their exploitation
• Care services provided to persons by members of the medical and paramedical professions approved by the Minister of Health
• Hospitalization and medical care provided by public or private hospitals or similar organizations, provided that such establishments or organizations are approved by the Minister of Health
• Transportation of sick or injured persons, by means of specially equipped vehicles, by professions licensed by the Minister of Health of Health
• Delivery of human organs, blood and milk
• Sale of specialized equipment for medical activities
• School or university teaching services provided by public or private establishments or similar bodies, provided that these establishments or bodies are approved by the Minister of Education
• Agricultural materials and equipment, the list of which is established by joint order of the Ministers of Finance and Agriculture, except for vehicles for transporting people or for mixed use
Option to tax for exempt supplies. The option to tax exempt supplies is not available in Guinea.
E. Time of supply
The time when VAT becomes due is called the “time of supply” or “tax point.” Generally, in Guinea, VAT tax point occurs for:
• Goods – at the delivery time for sales and deliveries
• Services and business carried out with the state or local authorities – at the time of payment of the price or installments
• Discount of a negotiable instrument/commercial bill – on the expiry date of the bill
The new general tax code provided details on the liability for VAT for certain categories of transactions, such as the discounting of commercial bills (the tax point is the due date), transfer of
Refunds. When, for a given tax period, the input tax exceeds the output tax, it results in a VAT credit repayable by the tax authorities. Only certain companies are entitled to a refund of their VAT credit (mining companies, oil companies, exporting companies and all companies subject to the 0% rate)
Pre-registration costs. Input tax incurred on pre-registration costs in Guinea is not recoverable.
Bad debts. There is no specific provision in the Guinean tax code that relates to the write off of bad debts. However, in practice, in the case of deliveries of goods (which the tax point is the time of delivery), some taxable persons regularize the VAT amount declared and keep all the supporting documents justifying that the debt has not been recovered and the corresponding VAT amount has been already paid.
Noneconomic activities. Input tax incurred on purchases that are used for noneconomic activities is not recoverable in Guinea.
G. Recovery of VAT by non-established businesses
Input tax incurred by non-established businesses that are not registered for VAT in Guinea is not recoverable.
H. Invoicing
VAT invoices. It is a legal requirement for a taxable person to issue a VAT invoice for each sale or supply that they make to a customer. The VAT invoice should be issued in duplicate. The original must be given to the recipient and a copy of the invoice retained by the supplier.
In addition, the invoice must clearly state, among other information, which items are taxed, the tax rate and the amount of tax being charged.
Credit notes. A credit note is sent by the supplier to notify the customer that he has been credited a certain amount due to an error in the original invoice; or decrease the agreed amount of the supply previously agreed. The information given on the credit note is the basis for establishing the adjusted VAT amount on the invoice. It also enables to adjust the figures for VAT that has been billed.
Electronic invoicing. Electronic invoicing is allowed in Guinea, but not mandatory.
Scope of electronic invoicing. For B2B, B2C and business-to-government (B2G) supplies, electronic invoicing is allowed but not mandatory in Guinea. There is no threshold beyond which taxable persons are required to adopt electronic invoicing in Guinea. The requirements related to electronic invoicing are the same as those for paper invoicing.
There is no formal prohibition of electronic invoicing in Guinea, however, Guinean tax law does not make any specific reference to the implementation rules of electronic invoicing. As such, generally only paper invoices are allowed in Guinea. However, in the event of a tax audit, Guinean tax authorities may exceptionally use electronic invoices (scanned copies in this instance) when the company carries out a very large number of transactions.
At the time of preparing this chapter, the 2024 Finance Act is expected to provide more clarity on the electronic invoicing rules in Guinea and what supplies it will specifically cover. No further updates have been released.
New billing regulations. Invoices can be entered manually on the eTax portal or sent automatically via the eTVA API application, integrated into the SAFIG platform. This flexibility allows taxpayers to choose the method best suited to their tax declaration.
Simplified VAT invoices. Simplified VAT invoicing is not allowed in Guinea. As such, full VAT invoices are required.
Self-billing. Self-billing is not allowed in Guinea.
Proof of exports. VAT is not chargeable on exports of goods or services. To qualify as VAT-free, exports must be supported by evidence that the goods have left Guinea. However, the Guinean Tax Code does not describe the required document information.
Based on the provisions of the customs code, the documents required for exports are copies of contracts, invoices, goods registration books and dispatch slips.
Foreign currency invoices. For the provision of services and the supply of goods on Guinean territory, a currency conversion requirement is in place., In accordance with the local exchange regulations, payments must be only made in the domestic currency, which is the Guinean franc (GNF), at the daily rate of the Guinean Central Bank.
When invoices are linked to transactions with foreign countries, payments in a foreign currency are allowed, subject to bringing proof of such transactions.
Supplies to nontaxable persons. There are no special invoicing rules for supplies to nontaxable persons in Guinea. As such, full VAT invoices are required.
Records. In Guinea, examples of what records must be held for VAT purposes include accounting documents, and the supporting documents (notably, purchase invoices and customs documents) of the operations carried out by the taxable person. There are no specific record-keeping requirements for VAT in Guinea.
In Guinea, VAT books and records must be held within the country. While there are no specific provisions provided by the law for where the records should be held, it is advisable to keep them local in Guinea to address any requests from the local tax authorities.
Record retention period. Records must be kept for a period of 10 years after the year in which the transactions were recorded in the books.
Electronic archiving. Electronic archiving is allowed in Guinea. However, the law does not refer to specific record keeping requirements for VAT for Guinea. However, the law mentions that the data can be archived digitally on the condition of ensuring the tax authorities, for audit purposes, have online access to download and use the stored data.
I. Returns and payment
Periodic returns. VAT is reported monthly (by the 10th of the month following the transaction) via the single unified tax return (Déclaration Unique des Impôts et Taxes).
Periodic payments. VAT amount due should be paid in local currency (Guinean franc) via bank transfer and the payment proof lodged together with the monthly tax return, i.e., by the 10th of the month following the transaction.
Electronic filing. Electronic filing is allowed in Guinea, but not mandatory. The VAT return can be submitted via the e-tax platform. It can also still be submitted in paper through the form “Single unified tax return.” For electronic filing, the taxable person must complete the requested information related to the following sections: output tax, input tax, VAT credit of the previous month, third party VAT (output and input) and the net VAT amount payable. Also, the recapitulative statement of the input tax must be joined to the tax return.
Payments on account. Payments on account are generally not required in Guinea, except for certain taxable persons. An advance payment is only required for the supply of goods to the State, local authorities and public institutions. This means that the VAT is due for these supplies at the time of the partial or total collection of the price or the down payments, even if this collection occurs before the realization of the generating event.