VAT Calculator Ethiopia (15%)

Beyond the standard rate, the VAT Proclamation No. 1341/2024 (Federal Negarit Gazette No. 61, 21 August 2024) recognises zero-rated and exempt supplies, listed in the schedules attached to articles 9 and 10. Zero-rated supplies carry no VAT but still let the seller recover input VAT. They cover goods sold for export, services supplied for use outside Ethiopia, international transport of goods or passengers, and the transfer of a business as a going concern between registered persons when set conditions are met.

Exempt supplies (article 10) charge no VAT and give no input VAT recovery. The list includes the sale of a residence that has been lived in for two years or more, residential rent (other than lets of under two months), financial services supplied by licensed banks and other institutions, education programmes of recognised schools, universities and technical colleges, religious services, medical services, medicines prescribed by a doctor, mass public transport, seed, fertiliser and agricultural chemicals used only for farming, supplies by an employer where 60% or more of the staff are persons with disabilities, and ambulances and fire-fighting vehicles.