Togo Introduces Electronic Invoicing and New Taxes in 2026 Budget

Economic governance

Wednesday, 07 January 2026 16:59

Togo Introduces Electronic Invoicing and New Taxes in 2026 Budget

Togo adopted the 2026 finance law on Dec. 29, 2025, to strengthen revenue mobilization.
The law introduces certified electronic invoicing and new sector-specific taxes and exemptions.
The 2026 budget rises 14.4% to CFA2,740.5 billion, with revenue collection led by OTR.

Togo adopted its 2026 finance law on Dec. 29, 2025, and introduced several fiscal innovations aimed at strengthening revenue mobilization. The law also signals a shift toward more targeted economic and social tax objectives.

Strengthening Compliance and Revenue Collection

Among the measures introduced this year, the government implemented certified electronic invoicing. This mechanism aims to strengthen transaction traceability and combat tax fraud, particularly related to value-added tax. The certified electronic invoice also seeks to improve transaction transparency and facilitate tax audits in the formal sector.

In a similar effort, the state introduced a final withholding tax of 5% on winnings from betting and games of chance when the amount per bet exceeds CFA500,000. Authorities have already brought this measure into force.

Targeted Support for Productive Sectors

On the fiscal support front, the 2026 finance law grants a VAT exemption on feed and supplements used for local livestock and fisheries products. Parliament said the measure aims to reduce input costs and support animal production.

In parallel, the law introduces an export tax on cashew nuts, soybeans, and shea nuts. Authorities aim to curb exports of raw agricultural products and encourage local processing.

Inclusion Measures and Asset Tax Adjustments

On the social front, the law grants a non-refundable tax credit of CFA120,000 per employee per year to companies that hire persons with disabilities. The law also simplifies the registration of public procurement contracts reserved for young and women entrepreneurs by allowing deferred payment of registration fees.

In addition, the government applied a proportional duty of 3.5% on value increases resulting from property revaluation requests. This measure reflects an adjustment of the tax framework to evolving asset values.

For 2026, the government balanced the budget in revenue and expenditure at CFA2,740.5 billion, marking a 14.4% increase from 2025. Authorities assigned a central role to the Togolese Revenue Authority (OTR) in mobilizing the resources required to finance these objectives.

The state-owned agency has delivered results that authorities consider encouraging. In 2025, the government tasked OTR with mobilizing about CFA1,200 billion, representing an annual increase of 8%. By the end of September, OTR had collected nearly CFA830.5 billion.

R.E.D

REFORMS OVERVIEW

STARTING A BUSINESS (more info)

At the fifteenth position, worldwide, and first in Africa, under the Starting a Business index of the 2020 Doing Business ranking, Togo sustains its reformative dynamics with more reforms….

ENFORCING CONTRACTS (more info)

Compared to some years ago when it was one of the lowest rankers under the Doing Business’ Enforcing Contracts indicator, Togo, leveraging many efforts to improve its business climate, was able to jump significantly on the index in the recent years... .

CONTRACT EXECUTION (more info)

Creation of special chambers of commerce for small debts • Creation of chambers of commerce at the Court of Appeal • Civil and commercial cases now handled by distinct clerks • Establishment of commercial courts in Lomé and Kara • Lawyers and bailiffs now have access to the FORSETI COMMERCIAL platform • A maximum period of 100 days was fixed to settle a commercial dispute .

TRADING ACROSS BORDERS (more info)

In comparison to previous years,Togo has significantly improved its ranking under the“Trading across borders” indicator by adopting multiple reforms that focus mainly on the digitization and reduction in delays, for import and export procedures related to import and export.

In comparison to previous years, Togo has significantly improved its ranking on the “Trading across borders” index by adopting multiple reforms that focus mainly on the digitalization and reduction in delays, for import and export procedures related to import and export.

CONSTRUCTION PERMIT (more info)

After moving from the 133rd to 127th place under the 2020 Doing Business’ construction permit index, Togo intends to reiterate this feat in the coming edition of the global ranking. To this end, it has introduced this year multiple reforms.

GETTING ELECTRICITY (more info)

Over the past two years, Togo’s ranking under the Doing Business’ Getting electricity and water indicator has increased consistently. Owing this performance to multiple reforms aimed at making it easier for businesses to access power and water, Lomé plans to introduce even more reforms this year to keep up its improvements.

REGISTERING A PROPERTY (more info)

Out of all the 'Doing Business’ indicators, Property Registration is where Togo has improved the most since 2018. Indeed, after spending years in the lowest part of this ranking, the country now seeks to beat Rwanda which is the best performer on this index in Africa. To do so, Lomé has been introducing many reforms, with the latest batch implemented this year.

PUBLIC PROCUREMENT (more info)

From professionalization to digitization, through legislative regulations, Togo’s public procurement framework is constantly being modernized. Several reforms have been implemented to improve the sector much to the benefit of the private sector, which is the focus of the National Development Plan.

PAYING TAXES AND DUTIES (more info)

To improve its business environment, Togo introduced some important reforms related to the payment of tax and duties. From the replacement of some taxes to the cancellation of others through exemptions, the country has only one objective: offer the most attractive tax framework to investors and economic operators. To achieve this, the authorities relied on digitization.