Cape Verde Reinforces Full-Scope E-Invoicing, Setting a Digital VAT Benchmark
Cape Verde has reaffirmed its position as a leader in African digital tax reform, with the 2026 national budget reinforcing mandatory electronic invoicing (Documents Fiscaux Électroniques, DFE) for all businesses. The system, rolled out nationwide by 2022, now benefits from strengthened legal and regulatory backing, making e-invoicing a core compliance and enforcement tool.
Under the law, all taxpayers — large and small — must issue electronic invoices for all transaction types, including B2B, B2C, and B2G. Invoices require unique identifiers, digital signatures (ICP-CV certificates), and QR codes, and must be validated in real time by the tax authority before being considered valid. Non-compliance can trigger audits and penalties, embedding e-invoicing into the government’s transaction-level VAT oversight.
Cape Verde’s comprehensive approach sets it apart from larger African economies that are still piloting or phasing in e-invoicing. The small population and compact economy allowed the government to implement a nationwide, legally enforceable, real-time reporting system, offering a model for other jurisdictions aiming for structured digital VAT compliance.
The January 2026 update signals to businesses that real-time e-invoicing is now the baseline for all VAT transactions, demonstrating that even small economies can achieve cutting-edge digital tax administration.