PATERE BREA APHEALE 6TNAN 6.2.60 196 IGN FEDERAL NEGARIT GAZETTE OF THE FEDERAL DEMOCRATIC APE kee HAETUEN, Prarie AOE Hho APES AVIA tom APE Prats ALT Sha APR hoc eeiee (APREAMA) NIRAT TWAMA ABA OUT Naor ye: OATERL ELGAR APHEALR ETAAN aT MAKE KREME APNEOLR ETHAN Fal -boheE Phe MA noe: REPUBLIC OF ETHIOPIA 25" Year No. 81 ADDIS ABABA 13" August, 2019 rom Content Proclamation No. 1157/2019 fi) Value Added Tax (amendment)Proclamation. Page 1153+ Proclamation No.1157/2019 A PROCLAMATION TO AMEND THE VALUE ADDED TAX WHEREAS, it has become necessary t further amend the Value Added Tar Proclamation No.285 /2002 (as amended); NOW, THEREFORE, in accordance with mye NPR AE (B) NG (TH) coure > | article 55 (1) and (11) of the Constitution, it is PoE bAa SrarB As: &. ABC Con LY APE “Pra Ar Jha (TAAL) APE bec AE. Porte Auta LTA: &. evatie PALI ALT DHA APR kG RTE, (rea) by ATRTrAw@ AILIT TTD BRAPK NIK AAD TOO ATR (4) rece tevtrraw Ay eb: hereby proclaimed as follows. 1. Short Title This proclamation may be cited as the “Value ‘Added Tax (amendment) Proclamation No.1157/2019" 2. Amendment The Value Added Tax Proclamation No.285/2002 (as amended) is hereby furthet amended as follows: I/ Article 2 (1) is deleted and replaced by the following new sub-article (1).“BI PLAN UL VA: v) ANG tor Pie ae Ub wT LhForo- mPrrA Tied EC & IAL (NC AN LARS) AT Jw NAL. AVY ThA NEL ALTA OC? A) N7F'Fa-y OT Tb ahr LaF @ra- mba Tee NG LAS (DE A 92.0.8) AI PU DD Ne EOC AU PihAg CARD O61 NILWISS OC LBOndeder” E/ CAPR AR E (8) PACH NeRtrrAw- AKA WD NEPK (8) bbs: B.MAAANP MAT CULE T EC yo” £/ HAPR AIPA & (BR) boar eerbrraAw@ AAA WN NIE (KZ) bangraa:: LIAO” FN Nie PCREY AIPA OL HIME LTE Aeormt APTI OL MEUPPE — a0'F18> TEP AL Pear NAIK Govt Ag. MAMET AAT LTA HNC dU VR VANCKCH omicer AG Naw? Panda. MEL VAP LAiTard Ad TNCET Petty eod33” BAPE AIR ZB) -bECn NerhtAw r&d WN AIR (2) -eenar: “ECU AFP FOO AKER BV) 8.907, PUT WML ANTOr- Pxand- V) PTH “LLAEC NLLONO andoge Nona cower dhe Tico NV Room AMA be ANAM AM PhS RO TRWEEAE RRA DEE onm bre ER nahh EFF RTA 4% Federal Negarit Gazette No. 81, 13" August,2019....page 11535 “I/ “Accounting period” shall means: a) In the case of taxpayers whose tumover in any 12 months is birr 70,000,000 (birr seventy million) and over, every month; b) In the case of taxpayers whose turnover in any 12 months is less than birr 70,000,000 (birr seventy million) every three months, wherein the month of Nehasse and Pagumen shall be aggregated and treated as one calendar month.” 2/ article 2 (4) is deleted and replaced by the following new sub-article (4). “4, “authority” means the Ministry of Revenue.” 3/ new sub-article (27) is added following article 2 (26) of the Proclamation. “27/ “capital good ” means an asset with a life time of more than one year, used directly or indirectly in the manufacture of goods and in the rendition of services and includes building, vehicle, machinery, equipment, and other similar tangible assets .” 4/ article 7(5) is deleted and replaced by the following new sub-article (5): “5/in the case of transactions to which sub-article 1 (a) of this article is applicable. a) the tax shall be withheld and paid to the authority by the buyer in accordance with the directive to be issued by the Minister of Finance;A iro Fen Pras it dha eee furor rho t TCAT At FE boar Nc LNA” BIEKOE AMA BRA) -becn levrAe 440 WO NER (8) eethcka: HU) Abe Ad nd Ferenilal WLP carr LAN har heaven NEA MAA H we aa, onde vet AeNO 2 ALTE OFF Chénor PNM OPP HO AeA PTS Poe RFAPA PPA Ly Phar. or ir pam ha NAR HNO wey emer Wael temfameg 97: aha ag. 14 i LRA, ayer LeGwior P40 We BF ae? (hac AIK am The) MAR PY Ph he (rom Mt 2 OAR CLT wpe Foy eit we ab ater Penal Vie, Brown 1. 1A Adar PLHP TL fUo PRA OPP ahd APMNLANT FFI ye AIO O, Ponard mn treo NTA OPP AL, LEhddor Fheae ROA BHA ALP PRer KL I Ada Weyadar HHA AL APTA LCI" RAP Whe BAR) beam Senberar- Wd WHEAT (2) AG (KE) Paayreras: WER BE (B) (0) PrRTO® ee OF Ae PrheA dha AIL AGA 72M» 51 Article 21 (6) is deleted and 1 following new sub-article (6), “6/ a) a person who registers or has to register for vat shall be entitled to credit under this article in the first accounting period in which the person is registered or has to register for vat, on the amount paid on goods at hand on the date of registration and that are used or to be used for the taxable transaction, but only to the extent that the purchase or import of the goods occurred not more than six months before the date of registration, b) 2 person whose 12 months takable transaction exceeds birr 100,000,000 (birr One hundred million) shall be cnntited to credit under this article in the accounting period after the date of registration on the amount of value added tax p. id on capital ‘g00ds at hand or purchased after the date of registration that is used or to bbe used for taxable transaction.ISTE ERE LER IIE BREE TE AY TS EA HAN UY NIPR cowl PV NEAO- PIA beat Perel Pea pd AGE CCUG PbLEA ProoAt HCUT MCVE PIER MTD NAME: :” £ APR eovosit 70 LY APB 1c PLM Ere c0F Lvsa:: re home 24 AAD AND thd, % bY BAI AWVAOCY Na-k, PATERE LEAL APHEALL ETHAN TONRGT Federal Negarit Gazette No. 81, 13" August2019. 8/ the authority shall implement risk based refund system for refund to be paid in accordance with this article.” 3. Effective Date This proclamation shall enter into force on the date of its publication on the negarit gazette. Done at addis ababa this 13" day of August, 2019 SAHLEWORK ZEWDIE PRESIDENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA