Burkina Faso

Recent reform steps

In 2015, tax authorities of Burkina Faso implemented taxpayer segmentation in order to improve VAT compliance by combating revenue loss in the small-enterprise segment. However, the unstable situation affecting the country in 2014 and 2015 meant that the effects of this sweeping administrative measure did not register until 2016. Worth noting are the recent revenue collection strategies implemented, with the adoption of urgent quick-win measures, including the following:

• Strengthened monitoring of tax billing and collection operations;
• Strengthened tax management with regular updating of the taxpayer database and close monitoring of the main taxes (VAT, corporate tax, etc.);
• Special annual spot-check operations;
• Improvement of the tax compliance spot-check database, by inputting all VAT returns and centralising and analysing the main customer lists;
• Organisation of tax research and investigation operations at major construction sites and mines, focusing particularly on taxpayers filing credit or ‘nil’ VAT returns.

Progress achieved & good practices

With regard to domestic revenue mobilisation, the General Tax Department has seen an increase in its capital funds and the funds appropriated in the context of the implementation of its priority action programme.

The General Tax Department has been improved, with the establishment of a second department for medium-sized enterprises, which is responsible for companies reporting an annual pre-tax turnover of XOF 50 million or more, and the creation of a tax research and investigation department.

Policy coherence for development

Outlook & strategic priorities

The main challenges for 2017 were to:

• Mobilise the tax revenues required by the Finance Act, amounting to XOF 1.315.495.336.000 for the tax year 2017, of which XOF 720,688 billion is assigned to the General Tax Department;
• Operationalise the standardised billing procedure introduced in the country by the Finance Act in 2014.