Exempted business activities or transaction from Value Added Tax in Ethiopia.
The following transaction are free from Value added tax;
- the sale or transfer of a used dwelling, or the lease of a dwelling;
- the rendering of financial services;
- the supply or import of national or foreign currency (except for that used for numismatic purposes), and of securities;
- the import of gold to be transferred to the National Bank of Ethiopia;
- the rendering by religious organizations of religious or church related services;
- the import or supply of prescription drugs specified in directives issued by the Minister of Health, and the rendering of medical services;
- the rendering of educational services provided by educational institutions, as well as child care services for children at pre-school institutions;
- the supply of goods and rendering of services in the form of humanitarian aid, as well as import of goods transferred to state agencies of Ethiopia and public organizations for the purpose of rehabilitation after natural disasters, industrial accidents, and catastrophies;
- the supply of electricity, kerosene, and water;
- goods imported by the government, organizations, institutions or projects exempted from duties and other import taxes to the extent provided bylaw or by agreement’.
- supplies by the post office authorized under the Ethiopian Postal Services Proclamation, other than services rendered for a fee or commission; (1)
- the provision of transport;
- permits and license fees
- the import of goods to the extent provided under Schedule 2 of the Customs Tariffs Regulations;
- the supply of goods or services by a workshop employing disabled individuals if more than 60 percent of the employees are disabled; and
- the import or supply of books and other printed materials to the extent provided in regulations.
