- Proclamation No. 1341/2024 Published: On August 21, 2024, Ethiopia’s Federal Negarit Gazette published Proclamation No. 1341/2024, addressing the taxation of remote services.
- Definition and Scope: The Proclamation defines remote services and specifies the categories of service providers subject to VAT provisions, focusing on Business-to-Consumer (B2C) transactions.
- VAT Registration Threshold: Remote service providers must register for VAT if their taxable sales exceed 2,000,000 Birr (approximately US$17,500) within any 12-month period.
- Invoice Requirements: The regulation mandates the types of invoices that remote service providers must issue in Ethiopia to ensure compliance.
- Filing and Documentation: Service providers must adhere to filing and payment responsibilities, properly reporting and paying VAT, and maintaining necessary documentation for tax purposes.
Source Taxbackinternational
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