Ethiopia MOF Issues Directive on Application of VAT on Water, Electricity, Transport Services

The Ethiopian Ministry of Finance Aug. 29 posted online VAT Directive No. 1341/2024, on the application of VAT on water, electricity, and transport services. The directive includes measures to: 1) provide a VAT exemption for water and electricity consumption up to the monthly average for low-income households, with VAT being applied to users exceeding the threshold; 2) clarify that the VAT exemption for mass transport services will continue to be applicable; and 3) impose VAT on transport services using vehicles with a loading capacity of less than eight individuals total, excluding three-legged vehicles. [Ethiopia, Ministry of Finance, 08/29/24]

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