- Ethiopia now requires non-resident digital service providers to register for VAT and charge 15% VAT on digital services supplied to Ethiopian customers.
- The rules apply to a wide range of digital services, including software, streaming, online advertising, and access to digital platforms.
- Non-resident suppliers must register for VAT once revenue thresholds are met, even without a physical presence in Ethiopia, and comply with local VAT reporting and payment.
- Providers must identify in-scope services, monitor revenues, issue VAT-compliant invoices, and file VAT returns to avoid penalties.
- Digital service providers should update systems, pricing, and contracts to ensure compliance and reduce risks as enforcement increases.
Source: globalvatcompliance.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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