Ethiopia’s Ministry of Finance has released Directive No. 1006/2024, which alters VAT exemptions across the country.
Effective from 20 June, 2024, all goods and services previously exempt through various ministry directives or decisions will now be subject to VAT, except for those specified under Article 8(2) of the Value Added Tax Proclamation No. 285/2002 (as amended) and Articles 19 to 33 of the Value Added Tax Regulation No. 79/1995.
Under the new directive the categories of locally produced and imported goods which are exempted from VAT include selected cereals and pulses, agricultural inputs, cooked or prepared foods and drinks, and select capital goods and medical items.
Additionally, exemptions remain for goods and services covered by international agreements.
