How to Calculate VAT in Cameroon (2025 Guide)
In Cameroon, Value Added Tax (VAT) is a consumption-based tax applied on goods and services throughout the production and distribution chain. This guide explains how to correctly calculate VAT in Cameroon for both inclusive and exclusive prices, with examples, tips, and practical formulas.
What is the Standard VAT Rate in Cameroon?
The standard VAT rate in Cameroon is 19.25%. This rate applies to most goods and services within the country unless they are explicitly exempted or zero-rated.
Who Must Register for VAT in Cameroon?
Registration is required for:
- Businesses with an annual turnover above 50 million XAF
- Importers and exporters
- All large and medium enterprises
VAT-Exclusive vs VAT-Inclusive Prices
VAT-Inclusive: The tax is already included in the total price.
Formula: VAT on VAT-Exclusive Price
Total Price = Base Price + VAT
Example:
If a service costs 100,000 XAF before VAT:
Total Price = 119,250 XAF
Formula: VAT from VAT-Inclusive Price
For Cameroon: VAT = Total × (19.25 ÷ 119.25) ≈ Total × 0.1614
Example:
If the total price paid is 119,250 XAF:
Net Price = 100,000 XAF
How is VAT Calculated on Imports in Cameroon?
VAT is calculated on the CIF (Cost + Insurance + Freight) value plus customs duties:
Example:
If CIF is 500,000 XAF and duties are 100,000 XAF:
Total = 715,500 XAF
VAT Filing and Deductions in Cameroon
Businesses registered for VAT are required to:
- File monthly VAT returns
- Pay VAT collected from sales
- Deduct eligible input VAT (VAT paid on business purchases)
What Goods and Services Are Exempt?
- Basic food products (bread, milk, rice)
- Medical and educational services
- Books and academic materials
- Financial services (loans, insurance)
Benefits of Accurate VAT Calculation
- Avoid penalties from the Cameroonian Tax Authority (DGI)
- Maintain compliant tax records
- Reduce financial discrepancies
FAQs
Is VAT always 19.25%?
Yes, this is the standard rate as of 2025 unless the product is exempt or zero-rated.
How do I extract VAT from a total?
Use the formula: Total Price × 0.1614 = VAT portion.
What happens if I don’t register for VAT?
You may face fines and tax back-payments if your turnover exceeds the mandatory registration threshold.
Can I claim VAT back in Cameroon?
Yes, if you are VAT-registered and the purchases are for business purposes with proper tax invoices.
Conclusion
Calculating VAT in Cameroon is straightforward once you know whether the price is VAT-inclusive or exclusive. With a 19.25% rate, businesses must accurately compute and report VAT to stay compliant. Use proper formulas, keep valid invoices, and consult the Direction Générale des Impôts (DGI) for any regulatory changes. Whether you’re pricing goods or preparing returns, this knowledge helps avoid errors and build trust with clients and authorities.