Ethiopia VAT Guide for 2026: Rates, Registration & Filing
Ethiopia's standard VAT is 15%. Covers the registration threshold, taxable scope, and monthly filing requirements.
Last updated
Key Takeaways
Ethiopia charges 15% VAT on most goods and services, unchanged under VAT Proclamation No. 1341/2024, administered by the Ministry of Revenues [1]. The registration threshold is ETB 2,000,000 over any 12 months and applies to non-resident suppliers of remote and electronic services, whose collection duty took effect in 2025 [1][2]. Electronic distribution platforms can be treated as the deemed supplier [2]. SaaS, cloud, streaming, and clothing are taxable at 15%, while exports are zero-rated and basic foodstuffs, financial, medical, and education services are exempt [1].
Taxability Snapshot
SaaS
Taxable
Clothing
Taxable
Groceries
Exempt
Digital Goods
Taxable
Sales Tax Rates
Ethiopia's VAT standard rate is 15% on most goods and services, including digital supplies [1]. Exports of goods and services, international air and sea transport, and the supply of gold to the National Bank are zero-rated [1]. The rate is unchanged under the new VAT Proclamation No. 1341/2024 [2]. The tax authority is the Ministry of Revenues.
Rate | Applies to |
|---|---|
Standard 15% | Most goods, services, digital supplies |
Zero 0% | Exports, international transport, gold to National Bank |
Exempt | Financial services, education, medical, residential rent |
Registration & nexus threshold
VAT Proclamation No. 1341/2024 and Regulation No. 570/2025 extended VAT to non-resident providers of remote and electronically supplied services, with collection obligations reported effective from March 2025 [2]. The registration threshold is ETB 2,000,000 in taxable sales over any 12 months, and it applies to foreign suppliers as well [1][2]. Electronic distribution platforms are treated as the deemed supplier when they authorize the charge, delivery, or terms [2]. Customer location is set by a two-of-six test [2].
How to register for Ethiopian VAT:
Confirm your remote or electronic services reach recipients in Ethiopia.
Check whether you exceed ETB 2,000,000 over any 12 months.
Register online with the Tax Authority.
Receive your TIN and VAT number.
Charge 15% VAT and file monthly, or apply to file quarterly.
Filing frequency & deadlines
VAT returns are filed monthly by default, electronically, by the last day of the calendar month following the end of the accounting period [1]. Foreign suppliers may apply to file quarterly [2]. Payment is electronic and may be remitted in USD, EUR, GBP, or another approved currency [2].
Exemptions
Exempt supplies include financial services, insurance, education, medical and health services, residential rent, local public passenger transport, and books [1]. Exports, international transport, and gold supplied to the National Bank are zero-rated [1]. Taxable electronic services expressly include software, cloud and hosting, e-books, mobile apps, streaming, and online games — all at 15% [2].
Penalties
Late and non-filing and non-payment attract administrative penalties plus interest under the Federal Tax Administration Proclamation, with suspension of tax certificates and criminal sanctions for fraud [1].
Sources
Verified July 2026 against VAT Proclamation No. 1341/2024 and Regulation No. 570/2025; the exact effective date for non-resident collection is flagged as ambiguous in official guidance.
Frequently asked questions
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