African tax authorities are pushing global policymakers to ground crypto taxation rules in real-world administrative capacity and compliance realities.
The African Tax Administration Forum (ATAF) has urged global policymakers to move beyond theory and adopt practical, implementable approaches to crypto taxation, reflecting the administrative realities of African tax systems.
Speaking at the Sixth OECD Global Forum on VAT in Paris, ATAF’s Head of Member Services, Mr. Emeka Nwankwo, highlighted the challenges crypto assets pose for VAT regimes due to their rapid evolution and regulatory ambiguity. From an African perspective, he stressed the need for clear, workable VAT models that balance neutrality with enforcement capacity.
ATAF recommended clear VAT treatment for token exchanges, detailed classification guidance for crypto-related services, transparent valuation methods, and prioritisation of compliance on taxable services and fees. Leveraging data from Virtual Asset Service Providers (VASPs) and AML frameworks, alongside regional coordination, was highlighted as key to reducing arbitrage and improving audit consistency.
In a related session, ATAF officials also emphasised phased, consultative approaches to taxing cross-border digital services. ATAF’s engagement reinforces its role in translating global tax debates into actionable, Africa-relevant policy.
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