Ethiopia VAT / Sales Tax
Detailed vat / sales tax rates and rules for Ethiopia in 2026.
VAT / Sales TaxETB
VAT is levied at 15% on taxable goods and services. Exempt supplies include financial services, healthcare, education, and the sale or rental of residential property. Basic food items including injera, teff, and bread are exempt. Registration is mandatory for businesses with annual turnover exceeding ETB 1 million. The turnover tax (TOT) of 2% applies to businesses below the VAT threshold.
Standard Rate
15%
Registration Threshold
ETB 1,000,000 annual turnover
Reduced Rates
0% — Exports, supplies to diplomats, goods to industrial parks
How Ethiopia VAT / Sales Tax compares
Ethiopia’s standard VAT / sales tax rate of 15% is the 93rd highest of 203 countries TaxAtlas tracks, above the global average of 13.7% and Africa’s regional average of 15.2%.
Ethiopia
15%
Africa average
15.2%
Global average
13.7%
