The African Tax Administration Forum (ATAF) has urged African tax authorities to adopt practical and workable approaches to taxing cryptocurrencies that align with the continent’s real administrative and compliance capacities. The call came during the Sixth Meeting of the OECD Global Forum on Value-Added Tax (VAT) in Paris, where global tax leaders gathered to share ideas and address emerging challenges in digital finance.
ATAF’s representatives stressed that many African countries are still developing tax systems for digital assets, and that guidance should move beyond theoretical discussions. Instead, policymakers need clear, actionable tax rules for crypto that reflect the realities of tax offices and local markets. This includes considering how much staff and technology revenue agencies have to implement and enforce rules effectively.
Emeka Nwankwo, Head of Member Services at ATAF, presented African technical insights on how VAT should apply to crypto assets. He noted that crypto continues to be an evolving issue for tax authorities worldwide, and Africa should lead with solutions that are implementable, not just conceptual. ATAF emphasised that tax rules should be designed so that tax offices can enforce them consistently and with limited resources.
Among the priorities ATAF highlighted are the need for a clear VAT model for crypto token exchanges that aligns with administrative capacity and does not create unnecessary complexity.
The organisation also called for published guidance that explains how different crypto activities should be treated, such as token dealing, custody services, mining, and fees. Clear valuation methods and evidence standards were also identified as critical to strengthen audit and compliance efforts.
Another key point was the importance of regional coordination. By working together, African tax authorities can reduce risks of arbitrage — where traders move activities to countries with weaker rules — and can standardise terminology and tax treatment across borders. This coordination can make enforcement more efficient and fairer for taxpayers in different countries.
Itumeleng Kgosietsile, Chairperson of ATAF’s Indirect Tax Technical Committee, echoed the need for practical design and stakeholder engagement. She said successful VAT regimes must be introduced through structured consultation, phased implementation, and clear guidance that supports both businesses and tax authorities.
ATAF’s engagement at the OECD forum reinforces its role as a bridge between global tax policy discussions and country-level implementation. By bringing African perspectives into international debates and helping translate global frameworks into usable tools, ATAF aims to help African countries build tax systems that can generate revenue without burdening taxpayers or tax offices.
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