Excise tax imposition in Ethiopia
On which goods does excise tax is imposed in Ethiopia?
Excise tax shall be charged on goods and services listed on Excise tax Proclamation 1186/2020.
Obligation to Pay Excise Tax
The following shall pay the excise tax imposed:
- The licensed manufacturer; for goods imposed on excise manufactured in Ethiopia,
- The Importer of the excisable goods; on goods imported into Ethiopia,
- The service provider, for services provide in Ethiopia
Imposition of Excise Tax
Excise tax shall be charged in on goods and services listed on Excise tax Proclamation 1186/2020 or in general;
a) Excisable goods manufactured in Ethiopia by a licensed manufacturer;
b) Excisable goods imported into Ethiopia;
c) Excisable services supplied in Ethiopia by a licensed person.
Timing of Liability for Excise Tax
- The liability of a licensed manufacturer for excise tax on excisable goods manufactured in Ethiopia shall arise at the time of removal of the goods from the manufacturer’s factory.
- The liability of a licensed person for excise tax on excisable services shall arise at the time of the supply of the services.
- The liability of an importer for excise tax on excisable goods imported into Ethiopia shall arise at the time of importation.
Excisable Value
The excisable value of excisable goods imported into Ethiopia shall be the sum total of the following amounts:
a) The customs value of the goods whether or not any Customs Duty is payable on the goods;
b) The amount of Customs Duty (if any) payable on the goods.
– The excisable value of excisable goods manufactured in Ethiopia shall be the ex-factory selling price of the goods, but not including the following:
a) The value added tax payable on the supply of the goods;
b) The cost of excise stamps, if any, and
c) The cost of returnable containers. The excisable value of excisable services shall be: if the excisable services are supplied by a registered person in an arm’s length transaction, the fee, commission or charge payable for the services.
