- Ethiopia has implemented a tax liability for foreign providers of digital services
- The VAT Act has been amended to require non-resident providers to register for domestic VAT
- The Federal Government of Ethiopia approved a new VAT Proclamation to accommodate the growth of the digital economy
- The VAT Proclamation was officially published in August 2024
- The implementation framework is pending adoption of Implementing Decrees and Regulations
- The registration threshold for foreign digital service providers has been increased
- Foreign taxable persons are categorized as digital suppliers or digital platforms
- Tax accountability depends on the connection between the supplier and platform operator
- The standard VAT rate in Ethiopia is currently 15%
- Compliance with the new VAT regulations is necessary for foreign providers of digital services
- The Ministry of Revenue is drafting Implementing Decrees to define registration and collection processes.
Source: 1stopvat.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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