Senegal has introduced a VAT exemption for specified agricultural equipment, facilities, and services, replacing the previous suspension regime for eligible investment projects and reducing investment costs in the agricultural sector.
Senegal has exempted specified agricultural equipment, facilities, and services from VAT under Joint Order No. 019972 of 17 July 2026, signed by the ministers responsible for finance and agriculture. The order is awaiting publication in the Official Journal.
The exemption applies to equipment for soil preparation, sowing, fertilisation, irrigation, harvesting, and post-harvest activities, as well as horticultural, poultry, and livestock production equipment. Listed services include land clearing, mechanised farming, drainage and irrigation works, phytosanitary treatments, veterinary services, and agricultural training. Both imported and domestically produced items qualify.
Until now, companies approved under the Investment Code received VAT suspension on acquisitions during their investment phase. But farms operating in VAT-exempt sectors could not recover that suspended tax once operations began, effectively turning it into a permanent cost.
The new order converts this suspended VAT into a definitive exemption retroactively from 1 January 2013, eliminating the expense for all approved projects.
The exemption targets Investment Code beneficiaries undertaking projects valued at 15 million FCFA or higher. Customs authorities will configure systems to apply the exemption automatically on imports; domestic beneficiaries must complete standard VAT exemption approval procedures.
The government expects this to reduce the actual cost of agricultural investments, improve business competitiveness, and accelerate sector modernisation.
