Cameroon’s Domestic VAT Revenue Falls Short of First-Quarter Target, Import VAT Softens the Blow

Cameroon’s tax authority collected CFA197.7 billion in domestic value-added tax (VAT) during the first quarter of 2026, falling CFA8.2 billion short of its CFA205.8 billion target for the period.

Despite the gap, the Directorate General of Taxes (DGI) achieved about 96% of its quarterly objective, according to the Ministry of Finance’s 2027-2029 Medium-Term Economic and Budget Programming Document. Domestic VAT revenue also declined from CFA203.5 billion collected during the first quarter of 2025, a year-over-year decrease of CFA5.8 billion, or 2.9%.

The weaker performance was limited to VAT collected on domestic economic activity. It did not affect VAT collected by customs authorities on imported goods.

Import VAT offsets the decline

VAT collected on imports reached CFA119.1 billion during the first three months of 2026, up from CFA112.6 billion a year earlier. That represents an increase of CFA6.5 billion, or 5.8%. Combined, domestic and import VAT generated CFA316.8 billion during the quarter, compared with CFA316.1 billion in the same period of 2025. Total VAT revenue therefore remained broadly stable, rising by about CFA700 million year over year.

That performance suggests the decline in domestic VAT should not automatically be interpreted as evidence of weaker consumer spending. Lower domestic VAT receipts may reflect softer taxable consumption or slower business activity, but they could also result from payment timing, tax exemptions, VAT credit refunds, or collection challenges. The budget document does not provide enough information to determine how much each factor contributed to the decline.

Cameroon still expects strong annual VAT collections

VAT is an indirect tax ultimately paid by the final consumer. Businesses collect the tax on goods and services they sell, deduct the VAT paid on business purchases, and remit the balance to the tax administration.

Cameroon’s standard VAT rate is 19.25%, although some goods and services benefit from exemptions, reduced rates, or special tax regimes designed to support investment, lower the cost of priority equipment, or keep essential products affordable.

Domestic VAT remains the DGI’s largest single source of tax revenue and one of the pillars of Cameroon’s fiscal system. The 2026 Finance Law targets CFA1.282 trillion in domestic VAT collections for the year.

That annual target, however, should not be divided evenly across four quarters. Budget forecasts account for the timing of tax declarations and payments, seasonal economic activity, and tax adjustments.

For the first quarter, the official target was CFA205.8 billion. With CFA197.7 billion collected, the DGI missed that goal by CFA8.2 billion, not by more than CFA120 billion, as a simple quarterly average would suggest.

The main concern remains the 2.9% year-over-year decline in domestic VAT revenue. Even so, stronger import VAT collections helped keep total VAT receipts essentially unchanged during the first quarter of 2026.

BRM