- Ethiopia introduced VAT regulations for foreign digital services providers in July 2024
- New guidelines clarify obligations and application of VAT rules
- 15 percent VAT applies to remote services provided by foreign businesses to local consumers
- VAT may apply to services performed in Ethiopia and those related to immovable property
- Foreign providers offering inbound tourism products may be liable for VAT
- Telecommunications services used in Ethiopia by foreign providers are subject to VAT
- VAT rules cover cross-border digital commerce including digital entertainment and content
- Services related to digital data handling and online platforms are included
- Online marketplaces and digital platforms must register for VAT if they meet certain criteria
- Guidelines aim to clarify regulations and help foreign providers avoid non-compliance issues
Source: vatabout.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.
