- Ethiopia imposes a 15 percent VAT on nonresident digital service providers
- New registration and compliance rules introduced
- VAT Proclamation No. 1341/2024 issued by Ethiopia’s Ministry of Finance
- Aims to include cross-border digital transactions in the VAT framework
- Nonresident providers must register if annual taxable sales exceed ETB 2 million
- 15 percent VAT applies regardless of permanent establishment in Ethiopia
- Includes services performed physically or via electronic platforms
- Clarifies residence criteria for service recipients and VAT liability in platform transactions
- Non-compliance may result in penalties of ETB 100,000 per infraction
- Repeals previous VAT Proclamation No. 285/2002
- Part of Ethiopia’s initiative to align with international digital taxation standards
Source: regfollower.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.
