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Ethiopia Imposes VAT on Over-the-Counter Medicines, Enforcing Compliance Among Pharmaceutical Companies

  • Ethiopia’s Ministry of Revenues mandates VAT on over-the-counter medicines
  • Directive issued on August 14, 2025, for enforcement against non-compliant pharmaceutical companies
  • Notice sent to various tax offices and sectors
  • Over-the-counter medicines classified as taxable supplies
  • VAT framework introduced in 2003 with a 15 percent standard rate
  • Prescription medicines and certain essentials remain exempt
  • Over-the-counter products are a significant part of the pharmaceutical market, which relies on imports

Source: birrmetrics.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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