WATAF Pushes for Improved VAT System to Strengthen Revenue Collection in West Africa

Abidjan, Ivory Coast: The West African Tax Administration Forum (WATAF) has urged member states to accelerate the digitalization of Value Added Tax (VAT) systems across the region.

The body emphasized that limited access to tax payment systems via the internet continues to undermine revenue mobilization and economic growth in West African countries.

WATAF's echoed during a high-level regional forum held on Tuesday, April 21, 2026, in Abidjan.

The forum, organized by the African Development Bank (AfDB), brought together tax administrators, policymakers, and development partners to examine reforms and share best practices in VAT administration across the continent.

Speaking during the high-level panel discussion on “VAT Digitalization: Pathways, Challenges and Opportunities,” WATAF Executive Secretary Jules Tapsoba stressed that the digital transformation of VAT systems is now a strategic imperative for the region.

“Digitalization is the single most transformative lever for improving VAT performance across West Africa. Without it, we will continue to face leakages, inefficiencies, and limited compliance,” Tapsoba said.

VAT remains one of the most significant sources of domestic revenue in many West African countries. However, structural challenges continue to limit its full potential.

These include a large informal sector, weak tax culture, limited digital infrastructure, and insufficient coordination between customs and domestic tax administrations.

According to WATAF, these issues contribute to revenue leakages, delays in VAT credit reimbursements, and reduced business liquidity. Tapsoba highlighted that ongoing reforms across member states are already demonstrating the benefits of technology-driven tax systems.

These include the expansion of online taxpayer registration, the introduction of electronic invoicing, and the automation of tax declaration and payment processes.

However, he emphasized that such reforms must be scaled up in a more harmonized and coordinated manner across the region.

Also speaking at the forum, Eline Okudzeto, Chief Governance Officer at the African Development Bank, pointed to lessons from East Africa.

She noted that while progress has been made in digital tax systems, challenges remain in compliance, coordination, and system integration.

She emphasized the importance of cross-border VAT cooperation and reaffirmed the AfDB’s role in supporting policy dialogue, technical capacity building, and country-level reform programs.

Other prominent speakers also underscored the importance of strengthening VAT systems. These included keynote speaker Emeka Nwankwo, Head of Member Services at the African Tax Administration Forum; Abou Ouattara Sié, Director General of Taxes of Côte d’Ivoire; and Darlingston Yahkor Talery, Head of the Domestic Tax Unit at the ECOWAS.

They emphasized VAT’s critical role in domestic revenue mobilization while outlining ongoing challenges and future prospects for strengthening tax systems across the region.

WATAF further called on member states to align their national VAT frameworks with the ECOWAS Directive on VAT harmonization adopted in July 2023, which sets a domestication deadline of January 2027.

According to Tapsoba promoting digitalization is essential to facilitate a common market, ensuring fair competition, and strengthening regional economic integration.

In addition to digital transformation, WATAF outlined several key measures to improve VAT performance. The body named modernizing VAT refund systems to reduce delays, strengthening audit and verification mechanisms to curb fraudulent claims, enhancing customs valuation processes, and operationalizing joint audit teams between customs and domestic tax administrations.

The forum also emphasized the need to build robust data systems and regional databases to support evidence-based policymaking, alongside strengthening the capacity of tax officials and promoting greater public awareness of tax compliance.

At the same time, WATAF reaffirmed its commitment to supporting member states through technical assistance, capacity development, and knowledge sharing to drive the ongoing fiscal transition from reliance on border taxes to more efficient domestic tax systems.