B) a vat return under the value added tax proclamation c) a customs entry to the extent that it specifies the value added tax or excise tax payable in respect of an import of goods. The vat administration in ethiopia is tending to follow approaches that are common to those modern tax administrations such as more reliance on self assessment and voluntary compliance the fresh start of compliance risk management policy and strategy is also the current hope of the authority for the better achievement of its law enforcement. (2008) studied vat administration problems at large, vat audit in particular, gebeyehu (2008) studied tax audit and its role in increasing government revenue in ethiopia and mihret (2011) examines tax audit practice in ethiopia (the case of federal government. Implementation of value added tax and its related problems in ethiopia (the case of erca) i am highly indebted to the staff members of erca, especially mesfin brile, zeferu kasa.
The procedures to register for tin, value added tax (vat) in ethiopia are included here this page also contains procedures related to value added tax (vat), assessment, vat payment, vat filing, cancellation of vat registration, vat records and vat invoices. Since the major shift in economic policy from the command economy to market oriented economic system in 1992/93, the government of ethiopia has taken a series of tariff and tax reform measures with the objective of doing away outdated tariff and tax laws, to strengthen customs and tax administration, to improve the balance of trade to attract domestic and foreign direct investment, to. The issue of vat administration at the sub-national level in ethiopia was addressed by deciding to administer vat centrally and transferring the collection of the sub-nationals' shares timely as they have a significant expenditure role in public finance. The idea for the formation of the forum was born in kenya by the then vat commissioner of the vat department, mr edward odondo with membership coming from only east and central africa.
Value added tax is a recent addition to the tax regime in ethiopia on this page, you can find the rate of vat in ethiopia, voluntary and obligatory registration of vat in ethiopia, zero rate vat in ethiopia, and vat on imported goods. Even if vat is one of the most important sources of revenue and its implementation in ethiopia is infant this study tried to explore the major problems and prospects of value-added tax (vat) implementation in mekelle city. Administration of vat in ethiopia is as per the legislation, and which features of vat are being affected due to administrative weaknesses furthermore, in ethiopia.
Abstract this paper examines vat administration in ethiopia and identifies key problems including lack of sufficient number of skilled personnel and gaps in the administration in such areas as refunding, invoicing and filing requirements. It was the view of popoola (2009) that nigerian tax administration and practice be structured towards economic goal achievement since government budget for the year centres on the oil sector while decrying the low productivity of the nigerian tax system, deficiencies in the tax administration and. Value added tax (vat) administration also has to secure compliance with the laws by applying an array of registration, assessment and in ethiopia vat is collected.
This paper examines vat administration in ethiopia and identifies key problems including lack of sufficient number of skilled personnel and gaps in the administration in such areas as refunding. In ethiopia value added tax administration was introduced in january, 2003 primary to raise increasing revenue, modernizing tax implementation the study was particularly focused on challenges of value. In the process of vat administration and revenue generation, different problems were observed, the main ones being attitudinal problem of the tax payers and implementation capacity of the government employees. The ethiopian value added tax of 2002 follows the standard approach of exempting financial services from vat not all 'financial services' are, however, exempted from vat a number of services provided by the financial institutions are made taxable by the vat laws of ethiopia.
Sole trader a files vat return with 42 the transfer of the administration of vat from sole traders to the regional governments is through delegation as the vat proclamation no the following discussion briefly examines the assignment of vat revenues in ethiopiaejournal of tax research value added tax administration in ethiopia: a. Ethiopia sales tax rate - vat in ethiopia, the sales tax rate is a tax charged to consumers based on the purchase price of certain goods and services the benchmark we use for the sales tax rate refers to the highest rate. Failure of tax administrators in fully enforcing the law has caused problems to taxpayers that are part of the vat net in the form of unfair competition with taxpayers that are required to register but did not do so.
Value added tax (vat) has been introduced in ethiopia in 2002, the administration of which is exclusively the federal government's through the ethiopian customs and revenue authority (erca) however, since 2004. Value added tax administration in ethiopia in the last two decades, revenue administrations have undergone several institutional reforms, driven by the need to.
This study assessed the vat administration in bishoftu town the main objective of the research is to assess and identity problems related to vat administration in bishoftu town revenue office. Vat administration and efficiency in utilizing resources will determine the amount of vat collected all over the states of nigeria the vat act empowers firs to inspect, audit and investigate businesses for vat purposes. Tax administration systems (itas) available in the market and draws lessons learnt from 13 diverse co untries chapter 1 gives an insight in the context, motives and objectives behind the study it then goes on to describe.