- The Ministry of Finance announced a new regulation requiring businesses with annual revenue of 2 million birr or more to register for VAT. This aims to ensure equitable VAT taxation and applies to businesses with mixed supply exceeding 2 million birr. Some businesses with less than 2 million birr revenue, particularly professional service providers not in category “ለ” (B), must also register. Those in category “ሀ” (A) with accounting duties or voluntarily doing so are required to register. The regulation was introduced on Tuesday, and businesses can start adding VAT to prices upon registration. Tax collection has been challenging in conflict areas.
Source: borkena.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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