Ministry of Finance issued Directive No. 1104/2025, requiring certain taxpayers to register for VAT and start collection within 30 days.
Ethiopia’s Ministry of Finance issued Directive No. 1104/2025 on 3 September 2025, outlining updated requirements for Value Added Tax (VAT) registration.
Under the directive, VAT registration is mandatory for: Category “A” taxpayers; those required to maintain books of account; taxpayers voluntarily maintaining books; and anyone whose total turnover from taxable and exempt activities exceeds ETB 2,000,000.
Additionally, providers of professional services who are not subject to presumptive income tax (i.e., not Category “B” taxpayers) must register for VAT, irrespective of their turnover.
Taxpayers meeting these criteria who are not yet registered must complete VAT registration within 30 days of the directive’s publication. Once registered, they are required to collect VAT on taxable goods and services from the registration date.
