VAT Exempted Items in Ethiopia

If you have wondered what things are exempted from payment of VAT (Value Added Tax) in Ethiopia, I have the list for you below.

The list is from the Ethiopian Revenues and Customs Authority (ERCA).

The following are tax exempt items in Ethiopia:

1. The Sale or rent of a dwelling house which has been used for at least 2 years,
2. Financial service,
3. Local or Foreign currencies and warranty distribution or importation except for cents and medals research services,
4. The import of Gold for the presentation to the National bank of Ethiopia,
5. Religious or spiritual related services given by religious institutions,
6. Educational services given by educational institutions and child care given by kindergartens,
7. Electricity, kerosene and water supplies (does not include water processed by Factories),
8. Except for different services or commission fees, goods or services presented by postal service institutions as per the authority given by its establishment proclamation,
9. Transportation Services,
10. Permit and license payments,
11. If 60% of the employees are disabled the goods and services supplied by the institution employing these disabled individuals,
12. Books,
13. Food items,
14. Goods like sealing plastic bags, sewing materials and fertilizers for making Insecticide-treated bed nets for the prevention of malaria,
15. Transactions of pickles, wet blues and crust made by leather processing factories,
16. The import of chemically processed clothes used for the sewing of Insecticide-treated bed nets for the prevention of Malaria,
17. Government imported wheat,
18. Palm oils used for food,
19. Sale of Milk and bread,
20. Drugs, medical supplies and equipments,
21. Agricultural fertilizers, pesticide chemicals, selected seed,
22. Pension fee Services,
23. The sale of Airplane tickets by travel agencies,
24. “Injera”,
25. Publication and printing of books,
26. Sale of Processed leather to Shoe factories by leather processing factories,
27. Manufacturing of Stoves,

Please remember that laws change very frequently in Ethiopia. So, make sure you get the latest list form the government office or website.

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My next blog entry will be on Thursday Oct. 14, 2010.
Mullkam Samint!

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