30 September 2024
During September 2024, the Federal Democratic Republic of Ethiopia introduced VAT on the sale of digital services by non-resident providers to local consumers. This was confirmed within VAT Proclamation 1341/2024.
Previously, foreign businesses providing digital services to consumers in Ethiopia did not have to charge VAT on their sales. However, to remove the unfair advantage that this gave non-resident companies over resident providers, the Ethiopian government introduced VAT at 15% on these types of transactions.
Non-resident digital service providers will be required to register for VAT if they exceed an annual threshold of ETB 2 million (approx. £12,200).
Are you trading globally? Whether you require basic VAT advice or specific VAT compliance support, Fiscal Solutions can help. Our team of multi-lingual experts are knowledgeable in all the different VAT rules in Europe and around the world.
We help you simplify today’s complexities and address tomorrow’s challenges. The values we represent, and our consistent advice, mean you can trust Fiscal Solutions to do the right thing – for you and your organisation.
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