VAT calculator Ethiopia
Value added tax in Ethiopia is charged at 15% on most goods and services. Enter an amount and choose whether to add VAT or take it out of a price that already includes it.
How it's calculated
- Adding VAT: the price without VAT times 15%.
- Taking VAT out: the price with VAT divided by 1 plus the rate. The difference is the VAT.
- Zero-rated supplies pay 0% and exempt supplies pay no VAT. This calculator uses the standard rate.
An example
ETB 10,000 plus VAT is ETB 11,500. A price of ETB 11,500 with VAT holds ETB 1,500 of VAT.
Frequently asked questions
Who has to register for VAT?
A person whose taxable supplies in a 12-month period are expected to exceed, or do exceed, ETB 2,000,000.
Can I register below the threshold?
Yes, a business can apply for voluntary registration, but only if its yearly taxable supplies exceed ETB 1,000,000 or the amount set by a directive of the Minister.
Since when does this proclamation apply?
Proclamation No. 1341/2024 was published in the Federal Negarit Gazette on 21 August 2024 and replaced the earlier VAT law.
Key terms
- VAT
- Value added tax, a tax on the consumption of goods and services.
- Zero-rated supply
- A taxable supply charged at 0%.
- Registration threshold
- The level of yearly taxable supplies above which VAT registration is compulsory.
The same calculation in other countries
Up-to-date official data
Data checked against the official source on .
We check the official sources automatically, every day.
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