Senegal’s VAT exemption for renewables equipment

Last updated: 2 August 2023

In July 2020, the Ministry of Petroleum and Energy of Senegal enacted a bill exempting the production of electricity from solar and wind as well as biogas from the Value Added Tax (VAT). Prior to the exemption bill, the VAT was charged at the full 18% rate for off-grid renewable energy equipment and products. The list of 22 VAT-exempted appliances includes solar panels, inverters, solar thermal collectors, batteries, solar lamp kits, solar water heaters kits, wind towers, blades, rotors, nacelles as well as biogas equipment. Through the new bill, the government aims to accelerate rural electrification toward its universal energy access goal by 2025. 

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