The Ministry of Revenues, in its latest circular assured all that the precepts of Directive No. 148/2019, which was issued in 2019, are still effective. The directive outlines Value Added Tax (VAT) immunity for diplomatic missions, and international, continental, and international nongovernmental organisations.
The circular comes after the West Addis Ababa Small Tax Payer Branch Office asked the Ministry to clarify whether the exemption applies to house rent. It further emphasised that all branches should follow suit and apply the directive in all related cases.
The exemption includes VAT on rent and Telecom Services as per the circulars clarification.
Issued by Meseret Kebede, head of the Tax Refund Team at the ministry, the circular also expressed the ministry’s plans to issue a VAT exemption certificate to further ensure that similar misunderstandings do not occur.
Anonymous sources state that they were not aware of the exemption and plan on applying for refunds for the VAT payments they have made so far.