The West African Tax Administration Forum (WATAF) has called for a quicker adoption of digital VAT systems throughout West Africa, cautioning that ongoing inefficiencies hinder revenue collection and impede economic progress.

In a statement, the Manager of Communication and IT of WATAF, Danicius Kaihenneh Sengbeh, said the appeal was made during a high-level regional meeting in Abidjan on Monday. This event was organised by the African Development Bank and gathered tax administrators, policymakers, and development partners to discuss VAT reforms and exchange best practices.

During a panel on VAT digitalisation, the Executive Secretary of WATAF, Jules Tapsoba, emphasised that digital transformation is a strategic necessity. He highlighted that technology-based systems like electronic invoicing, automated tax filings and online taxpayer registration are essential for enhancing compliance, preventing fraud and increasing efficiency in tax administrations.

Tapsoba stated that neglecting digital tools could allow ongoing problems such as revenue leakages, compliance issues and administrative inefficiencies to continue.

While VAT remains a key domestic revenue source in the region, he pointed out that structural challenges, including sizable informal sectors, weak tax culture, limited digital infrastructure and poor coordination between customs and tax authorities, hinder its potential.

Eline Okudzeto also discussed lessons from East Africa, pointing out that although digital VAT systems have enhanced efficiency, issues still exist with system integration, compliance, and inter-agency coordination.

She emphasised the need for cross-border cooperation and reaffirmed the AfDB’s commitment to support technical capacity building and reforms at the country level.

Other contributors, such as Emeka Nwankwo from the African Tax Administration Forum, Abou Ouattara Sié and Darlingston Yahkor Talery from the Economic Community of West African States (ECOWAS), emphasised VAT’s key role in generating domestic revenue while highlighting ongoing challenges and potential reform opportunities.

Tapsoba also called on member states to align their VAT systems with the ECOWAS Directive on VAT Harmonisation, adopted in July 2023, which they are expected to implement domestically by January 2027.

He noted that harmonisation, along with digitalisation, would boost regional integration, foster fair competition, and help develop a common market.