Standard 10% VAT. Calculate VAT-inclusive, VAT-exclusive, reverse VAT extraction, and multi-item invoice totals. Accurate 2026 DGI rates.
Calculate how much VAT the buyer withholds and remits to the tax authority on this transaction.
Djibouti applies a value-added tax known as Taxe sur la Valeur Ajoutée (TVA) at a standard rate of 10%. The TVA was introduced in 2009 as part of a comprehensive tax reform replacing the previous consumption tax. Djibouti's 10% rate is one of the lowest in Africa, reflecting the country's strategic position as a trade and logistics hub and the government's desire to maintain competitiveness. The low rate also supports Djibouti's role as a major port and free trade zone in the Horn of Africa. Certain essential goods and services are exempt from TVA, including basic food items, medical and pharmaceutical products, educational services, and financial transactions. Exports and goods destined for re-export through Djibouti's free zones are zero-rated. The Direction des Impôts administers TVA collection. Businesses engaged in taxable commercial activities must register for TVA. Returns are filed on a monthly basis. Djibouti's economy is heavily focused on port services, military base hosting, and logistics, and TVA on these activities forms a significant portion of domestic tax revenue. The government has been working to diversify the economy while keeping the TVA rate competitive to attract foreign investment and transit trade.
Djibouti maintains a low 10% TVA rate to support its role as a major trade and logistics hub in East Africa. The low rate helps keep the cost of goods competitive for transit trade and supports the country's free zone activities.
Exempt items include basic food staples, medical and pharmaceutical products, educational services, financial transactions, and goods in transit through Djibouti's free trade zones. Exports are zero-rated.
TVA was introduced in Djibouti in 2009, replacing the previous consumption tax system. The reform was part of broader fiscal modernization efforts to create a more efficient and transparent tax collection system.
Goods and services within Djibouti's free zones are generally exempt or zero-rated for TVA purposes. This supports the country's position as a regional logistics hub and encourages foreign investment in port and trade-related activities.
TVA returns are filed monthly with the Direction des Impôts. Businesses must declare their output TVA, deduct any eligible input TVA, and remit the net amount due within the prescribed filing deadline.