# Ethiopia VAT Guide for 2026: Rates, Registration & Filing

Canonical: https://trykintsugi.com/sales-tax-guides/africa/ethiopia
Published: September 22, 2026

Ethiopia's standard VAT is 15%. Covers the registration threshold, taxable scope, and monthly filing requirements.

- **SaaS:** Taxable
- **Clothing:** Taxable
- **Groceries:** Exempt
- **Digital Goods:** Taxable

## 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

## 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

- [Ministry of Revenues — Ethiopia](https://www.mor.gov.et)

- [EY — Ethiopia VAT Proclamation 1341/2024 (non-resident digital services)](https://www.ey.com/en_gl/technical/tax-alerts/ethiopia-introduces-new-vat-proclamation-introducing-raft-of-changes)

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

### What is the Ethiopia VAT rate in 2026?

15% on most goods and services. The rate is unchanged under the new VAT Proclamation No. 1341/2024 [2].

### Do foreign digital sellers register for VAT in Ethiopia?

Yes. Under the new VAT law, non-resident providers of remote and electronic services register once they exceed ETB 2,000,000 in taxable sales over 12 months [1][2].

### What changed under Ethiopia's new VAT law?

VAT Proclamation No. 1341/2024 replaced the 2002 law and, with Regulation No. 570/2025, extended VAT to non-resident digital services from March 2025 [2].

### Is SaaS taxable in Ethiopia?

Yes. Software, cloud and hosting, apps, and streaming supplied to recipients in Ethiopia are taxable at 15% [2].

### How often is VAT filed in Ethiopia?

Monthly by default, by the last day of the following calendar month; foreign suppliers may apply to file quarterly and can pay in USD, EUR, or GBP [1][2].

### Who administers VAT in Ethiopia?

The Ministry of Revenues, which handles online registration and filing for domestic and non-resident suppliers [1].