- Ethiopian Ministry of Finance issued VAT Proclamation No. 1341/2024 on cross-border taxation of digital services by nonresidents
- A 15 percent VAT rate applies to remote services supplied to residents by foreign businesses
- VAT liability is imposed on nonresident providers without a permanent establishment for services performed in Ethiopia
- Criteria are specified for treating recipients of remote services as Ethiopian residents and determining VAT liability for services via electronic platforms
- VAT registration is required for taxpayers with taxable sales over 2 million Ethiopian birr annually
- A penalty of 100,000 birr is imposed for non-compliance with specified requirements
- VAT Proclamation No. 285/2002 is repealed
- Proclamation becomes effective upon approval by the House of Peoples’ Representatives
Source: news.bloombergtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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