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Ethiopia Adopts Revised VAT Proclamation

11 July 2019

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Approved Changes

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Ethiopia

On 4 July 2019, Ethiopia's House of People's Representatives reportedly approved the Value Added Tax (Amendment) Proclamation No. 1157/2019, which includes a number of amendments to the Value Added Tax Proclamation No. 285/2002. Changes include: The introduction of an ETB 70 million annual turnover threshold for monthly VAT return filing, with taxpayers below the threshold allowed to file quarterly (currently, all taxpayers must file monthly); For persons designated as VAT withholding agents, the maximum amount of VAT withheld under reverse charge is set at 50% of the total VAT due on the supply, with the supplier required to declare the...