INTRODUCTION
The Value Added Tax (VAT) Proclamation No. 285/2002 (as amended by Proclamation No. 609/2008) is under the process of amendment. The amendment is drafted by the Ministry of Finance and it was tabled for the discussion of the House of Peoples’ Representative. As per the news published on the weekly newspaper, Addis Fortune, the draft is reviewed by Parliament and referred for further scrutiny for its Standing Committee.
The draft is said to have included many amendments. The increase of the VAT reporting period from 30 days to 90 days for companies whose annual turnover is more than Birr 70 million and entitlement for refund of VAT by companies before they become operational are the salient once. Companies who bought capital goods of more than Birr 100 million are entitled for the refund of VAT within one-month period.
On July 4th 2019, the House of Peoples’ Representatives has unanimously approved this revised Proclamation on Value Added Tax, as the Revised Value Added Tax Proclamation No. 1157/2019. The details of these changes will be posted once the amended version of this Proclamation is published on the Federal Negarit Gazeta.
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