Customs procedure for Travelers to and out of Ethiopia

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Value Added Tax (VAT)

Definition of words Output

Value added tax shall be added at the final price of cost production.
Input Payment of VAT on production or service that a person able to claim for credit of the tax paid;

The VAT Return

A person is required to charge VAT on taxable supplies to customers called output tax but he is also able to claim credit for the tax paid business, purchases and expenses and assets know as the input tax.

Tax Invoice

A tax invoice is a sales invoice issued by a registered person is respect of any goods or services,

Value Added Tax

A sales tax based on the increase in value or price of product at each stage in its manufacture and distribution. The cost of the tax is added at the finial price and is eventually paid by the consumer.

Tax Rate And Impose Of Tax

The rate of value added tax is 15% and Zero Rate
The Rate of value added is 15 percent of the value
For every taxable transaction by a registered person, every import goods other than an exempt import and an import of services,

Zero Rate Tax

Taxable transactions shall be charged with Zero Rate percent are:

The export of goods or services to the extent provided in regulation.
The rendering of transportation or other services directly connected with international transport of goods or passengers as well as the supply of lubricants and other consumable technical supplies taken on board for consumption during international flights;

The supply of gold to the National Bank of Ethiopia.

A supply by a registered persons to another registered person is a single transaction of substantially all of the assets of a taxable activity or an independent functioning part of taxable activity as a going concern, provided a notice in writing signed by the transferor and transferee is furnished to the authority within 21 days after the supply taxes place and such notice includes the details of the supply;

For Value Added tax Registration

A/ Obligation registration

A person who carries on taxable activity who is obligatory has the low to register if at the end of another period of 12 calendar months the person made, during that period taxable transaction the total value of which exceeded 500,000 Birr or at the beginning of any period of 12 calendar months these are reasonable grounds to expect that the total value of taxable transactions to be made by the person during that period will exceed 500, birr.

B/ Voluntary Registration

A person who carried on taxable activity and is not required to be request for VAT, may voluntarily apply to the authority for such registration if he regularly is supplying or rendering at least 75% of his goods and services to requester persons.

Exempt transactions

For value added tax ( see proclamation 385/2002 Article 8 ) and regulation 79/2002 Article 19-23