The Ministry of Finance has issued a new directive establishing VAT-exempt thresholds for domestic electricity and water consumption. Effective September 5, 2024, the directive exempts the first 200 kWh of monthly electricity consumption and the initial 15 cubic meters of monthly water consumption from VAT. The directive also mandates the collection of VAT on wholesale electricity sales. The amendment to the VAT proclamation aims to expand the VAT base, sparking public discussion. The Ministry of Finance is drafting a regulation to implement the new VAT proclamation, which will maintain VAT exemptions for essential food items.
Source: allafrica.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
