(Ecofin Agency) - E-commerce is thriving in Côte d'Ivoire, providing job opportunities and increasing revenues despite ongoing challenges. As the Ivorian government looks to boost its income, they are involving the sector.

E-commerce platforms in Côte d'Ivoire will soon be subject to an 18% value-added tax (VAT) on their commissions, as revealed in a press release from the Treasury Department.

This measure is intended to rectify an imbalance that favored traditional businesses consistently paying VAT. It will be applied to all platforms, irrespective of their location, with possible sanctions for non-compliance, including access suspension in Ivorian territory and tax penalties. The new regulations also cover online advertising services, online data services, and online marketplaces. The tax directorate has stated that these tax provisions will extend to online gaming, cloud computing services, social networking platforms, and search engines.

While e-commerce is thriving and offers opportunities, operators in this sector face challenges related to online payments, logistics, and delivery, which can affect their sales. The announcement of these measures has already sparked reactions on social media. While the VAT aims to establish tax fairness between traditional and online businesses, some observers are concerned it might hinder the development of startups.

According to a report from the telecom regulatory authority ARTCI, the digital economy sector contributes 9% of Côte d'Ivoire's GDP.