Navigating VAT in the DRC: A Guide for Importers & Exporters

Introduction

For businesses trading across borders in the Democratic Republic of Congo (DRC), understanding Value Added Tax (VAT) is essential. VAT applies to most goods and services in the country and directly affects importers, exporters, and logistics companies.

Administered by the Direction Générale des Impôts (DGI), VAT in the DRC serves as a key revenue source for the government. However, compliance can be challenging due to complex procedures at ports, customs regulations, and documentation requirements.

This guide simplifies VAT obligations for importers and exporters—explaining registration, rates, exemptions, refund processes, and the latest reforms for 2025.

1. What is VAT in the DRC?

Value Added Tax (VAT) is a consumption tax charged on goods and services at each stage of production and distribution. In the DRC, the standard VAT rate is 16%, applied to both domestic and imported goods.

VAT is designed to be neutral—businesses collect VAT from customers and remit it to the DGI, while offsetting any VAT paid on their own purchases (input tax).

2. Who Must Register for VAT?

Any company that meets the VAT registration threshold must register with the DGI.

Registration Requirements:

• Businesses with an annual turnover exceeding 80 million Congolese francs (CDF).
• Importers and exporters trading regularly, even below the threshold, are encouraged to register voluntarily for credibility and reclaim benefits.
• Entities supplying taxable goods or services in the DRC, regardless of whether they are local or foreign-owned.

Once registered, businesses receive a Tax Identification Number (NIF) and must charge VAT on all taxable supplies, file monthly returns, and remit payments to the DGI.

3. VAT on Imports

Import VAT applies to most goods entering the DRC. It is assessed at customs by the Direction Générale des Douanes et Accises (DGDA) on behalf of the DGI.

How VAT on Imports Works:

1. Importers declare the value of goods (CIF value: cost, insurance, and freight).
2. VAT is calculated at 16% of the CIF value, including customs duties.
3. Payment is made before goods are cleared from customs.
4. The importer receives a tax credit for the VAT paid, which can be claimed against output VAT in monthly filings.

Exemptions from Import VAT:

Certain goods may be exempt from VAT, including:

• Raw materials and capital goods used in production.
• Donor-funded or humanitarian imports.
• Goods imported under specific investment incentives approved by ANAPI.

Importers should retain all customs documentation (declaration forms, invoices, and receipts) as proof for VAT credit claims.

4. VAT on Exports

Exports are treated differently to promote international trade and competitiveness.

Zero-Rated Exports

Exports of goods and certain services are zero-rated, meaning:

• VAT is charged at 0%, and
• Exporters can claim a refund on input VAT incurred during production or procurement.

To qualify for zero-rating, exporters must maintain full documentation, including:

• Commercial invoices and export declarations.
• Bill of lading or airway bills.
• Proof of payment and delivery outside the DRC.

This system ensures that VAT does not become a cost burden on goods sold abroad, maintaining DRC’s export competitiveness.

5. Filing VAT Returns and Payments

All VAT-registered businesses must file monthly VAT returns with the DGI, declaring both:

• Output VAT: collected from customers, and
• Input VAT: paid on business purchases and imports.

The difference between the two determines the net VAT payable or refundable.

Filing Deadlines:

• Returns must be submitted by the 15th of the following month.
• Payments should accompany the return to avoid penalties.

Late filing or underreporting may result in fines, interest, or temporary suspension of the business’s tax clearance certificate.

6. VAT Refunds and Credits

Exporters and businesses that accumulate input VAT in excess of output VAT can apply for a refund.

The Refund Process:

1. Submit a refund application with supporting documents (invoices, customs receipts, export declarations).
2. The DGI reviews the claim to verify authenticity and compliance.
3. Approved refunds are either paid directly or offset against future tax liabilities.

While refund timelines may vary, the 2025 reforms aim to digitize the refund system for faster and more transparent processing.

7. Common VAT Challenges for Importers & Exporters

Many businesses in the DRC face difficulties navigating VAT compliance. Common issues include:

• Delays at customs due to missing paperwork or valuation disputes.
• Incorrect invoicing, leading to disallowed input tax claims.
• Refund backlogs caused by manual verification processes.
• Language and procedural barriers for foreign traders unfamiliar with DGI systems.

To minimize risks, importers and exporters should engage local tax consultants and ensure all VAT documentation is complete and properly archived.

8. 2025 VAT Reforms: What’s Changing?

The DRC government, through the DGI, is implementing several updates under the 2025 Tax Modernization Plan to improve VAT efficiency and transparency.

Key Changes Include:

• E-filing for VAT Returns: Businesses will be able to submit returns and payments online through a new DGI digital platform.
• Electronic Invoicing (E-Invoicing): VAT-registered companies will issue verified invoices electronically, reducing fraud.
• Integrated Customs-DGI Systems: Linking DGDA and DGI databases to ensure consistency between import VAT and domestic reporting.
• Faster Refund Mechanisms: Priority processing for exporters and compliant businesses.
• Expanded VAT Education: Training programs for importers and small traders to improve compliance awareness.

These reforms are expected to reduce administrative burdens and align DRC’s VAT system with international best practices.

9. Tips for VAT Compliance

• Register early with the DGI if your turnover approaches the threshold.
• Keep accurate and complete records for all transactions and imports.
• Work with licensed customs agents to handle import declarations.
• File VAT returns and make payments on time to avoid penalties.
• Consult a tax professional before claiming refunds or applying exemptions.
• Regularly review updates from the DGI and DGDA websites for regulatory changes.

Conclusion

VAT compliance in the DRC is crucial for importers and exporters aiming to operate efficiently in a growing but complex trade environment. Understanding how VAT applies to imports, exports, and local sales helps businesses manage costs, stay compliant, and access refund opportunities.

With the 2025 VAT reforms introducing digital tools and streamlined refund processes, businesses that stay informed and organized will benefit the most.

For traders, manufacturers, and logistics firms, mastering VAT rules is not just about compliance—it’s a competitive advantage in one of Africa’s most promising economies.