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~Yot,.1A .,;Jt~ ;JILlIJFEDERAL NEGARIT GAZETA
OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA
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CONTENTS
Council of Ministers Regulations No. 7912002Council of Ministers Value Added TaxRegulations , Page 1979
REGULATIONS ISSUED PURSUANT TO THE VALUEADDED TAX PROCLAMATION
These Regulations are issued by the Council of Ministerspursuant to Article 5 of the Definition of Powers and Duties ofthe Executive Organs of the Federal Democratic Republic ofEthiopia Proclamation No. 4/95 (as amended) and Article 64of the Value Added Tax Proclamation No. 285/2002.
CHAPTER 1General
1. Short Title
These Regulations may be cited as the' 'Council ofMinisters Value Added Tax'Regulations No. 7912002.
2. Definitions
In these Regulations, unless the context requiresotherwise:1) "Authority", means the Federal Inland Revenue
Authority ("FIRA");2) "Customs Authority" means the Ethiopian Customs
Authority;3) "Minister" and "Ministry" shall mean the Minister
of Revenue and the Ministry of Revenue, respec-tively.
4) "Proclamation" means the Value Added TaxProclamation No. 285/2002; and
5) "Tax" or "V AT" means the Value Added TaxImposed by the V(\lueAdded Tax Proclamation.
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3. Supply of Goods or Rendition of Services
1) For purposes of Article 4, Sub-Article (3) of the
Proclamation treats the supply of goods or the
rendition of services to employees as supplies in the
course or furtherance of a taxable activity; and
therefore taxable unless the transaction is exempt
under Article 8 of the Proclamation.
2) . A supply of goods or services to employees are
treated as supplies for consideration and therefore
may be taxed, even if the employee did not pay (or
paid less than market value) for the goods or
services.
3) If an employer:
(a) provides an employee a cash advance,
(b) pays a supplier on behalf of the employee; or
(c) reimburses an employee
for the cost of goods or services provided as a fringe
benefit, the employer is not entitled to claim any
portion of the cost as a tax credit because the goods or
services provided to the emplyee are not used in
connection with the employer's taxable activity.
4) If an employer was denied a tax credit on the
purchase of goods or services (such as a passenger
vehicle), the supply of those items to an employee is
not a supply in connection with a taxable activity and
therefore is not subject to tax.
5) If a registered person supplies an exempt service
(such as a medical service at a company-run clinic) to
an employee, the service is not subject to tax and the
employer is not entitled to tax credits under Article
21 of the Proclamation for tax on purchases allocable
to the exempt services.
6) Where goods supplied under an installment sale or
finance lease (collectively referred to as a credit
agreement) are repossessed, the repossession is a
supply of the goods by the debtor under the credit
agreement to the person exercising the right of
repossession, and where such debtor is a registered
person, the supply is made in the course or fur-
therance of the debtor's taxable activity unless such
goods did not form part of the assets held or used by
the debtor in connection with that taxable activity.
7) The sale of a lottery ticket by the National Lottery
Administration is a supply of services.
8) Where a supply consists both of a supply that is
charged with tax at apositive rate and a supply that is
charged with tax at a zero rate, each part of the supply
is treated as a separate supply, unless one part is
incidental to a main supply within Article 5, Sub-
.Article (1) of the Proclamation.
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9. The'rendition of services by an employee to anemployer by reason of employment is not a supply.
10. The provision of goods on consignment and thetransfer of goods to a person in a representativecapacity is not a supply.
11. The removal of goods from a bonded manufacturingwarehouse or any supply of goods subject to anexport trade duty incentive scheme underProclamation No. 249/2001 is treated as a supply ofthose goods in the course or furtherance of a taxableactivity in Ethiopia. If the goods are sold into thedomestic market, the supply is taxable at the st~ndardrate, and if the goods are sold for export 'withinArticle 7, sub-Article (2)(a) of the Proclamation, thesupply is taxable at the zero rate.
12. a supply of goods or the rendition of services to aperson as agent for a principal is treated as a supplyto the principal.
4. Taxable Activity
1) For purposes of the definition of a taxable activity
under Article 6 of the Proclamation, anything donein connection with the commencement or ter-mination of a taxable activity is treated as carried outin the course or furtherance of that taxable activity.
2) Taxable activity does not include:(a) an activity carried on by a natural person.
essentially as a private recreational pursuit orhobby or an activity carried on by a person otherthan a natural person which would, if carried onby a natural person, be carried on essentially as aprivate recreati9nal pursuit or hobby; or
(b) an activity to the extent that the activity
involves the making of exempt supplies.'
5. Tax on Imports of Goods1) Except where the Proclamation provides to the
contrary, the provisions of the CustomsProclamation, relating to the import, transit, coas-twise carriage, clearance of goods, and payment andrecovery of duty, with such exceptions,modificatins, and adaptations as the Ministermay bydirective prescribe, shall apply, so far as relevant, tothe tax charged under the Proclamation on the importof goods.
2) Where tax is payable on an import of goods, the
importer shall, upon such entry, furnish the CustomsAuthority with an import declaration and pay the tax
..due on the import.
3) The import declaration sh'tll-(a) be in the form prescribed by the Customs
Authority ,(b) state the information necessary to calculate the
tax payable in respect of the import, and(c) be furnished in the manner specified by the
Customs Authority.
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4) The Customs Authority-
(a) shall collect at the time of import and on behalf
of the Authority, any tax due under the
Proclamation on an import of goods and, at the
time, obtain the name and the taxpayer iden-
tification number, if any, of the importer, and
the invoice values in respect of the import; and(b) shall make arrangements with the Ethiopia
Postal Services to perform functions on behalf
of th Customs Authority in respect of tax onimports that arrive through the Postal Services.
5) Goods covered by an export trade duty incentive
scheme under Proclamation No. 249/2001 are not
subject to tax at the time of import, except that tax is
payable upon import if the importer is covered by the
duty draw-back scheme.
Time of Supply
1) Article 3, Sub-Article (6) of these Regulations, treats
the repossession of goods under a credit agreement
as a supply of the goods. The supply occurs:
(a) on the day that the goods are repossessed, or
(b) when the debtor may, under any law, be
reinstated in his rights and obligations under the
credit agreement, on the day after the last day ofany period during which the debtor may under
such law be so reinstated.2) Article 4, su1r-Article (9) of the Proclamation treats,
as a supply of goods, the transfer of a taxable activity(or a portion of a taxable activity) as going concern.
The supply occurs when the transfer under that sub-
Article (9) occurs.3) Article 3, sub-Article (8) of the Regulations, treats
the removal of goods subject to an export trade duty
incentive scheme under Proclamation No. 249/2001(incluqing a sale into the domestic market) as a
supply of those goods in the course or furtherance of
a taxable activity in Ethiopia. The supply of thosegoods occurs when the goods are supplied in the
domestic market, or when the goods are exported, ifthey are supplied for export.
7. Value of a Supply
1) The value of a supply may be reduced by any price
discounts or rebates allowed and accounted for at the
time of the supply of goods or the rendition ofservices. Post-supply price adjustments must be
accounted for in accordance with Article 13 of theProclamation.
2) Where a portion of the price of a supply represents
tax imposed by the Proclamation that is not accoun-
ted for separately, the value of the supply is the price
reduced by an amount equal to the product of the tax.
1A"Iif.it~ ~I.t-~ ~:MT .7",11)~1'C Iii ;J-UUfP'~I"" liifj?i '}.,... Federal Negarit Gazeta - No. 1931st December, 2002-Page 1983
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3) It' a registered person converts a portion of, or anentire good or service from use in a taxable activityto a different use and the person was allowed a taxcredit in respect of the acquisition of those goods orservices, Article 4, Sub-Article (2) of theProclamation treats the change in use as a supply ofthe goods or services in the course or furtherance ofa taxable activity. The Minister of Revenue mayissue directives on the value of a supply resultingfrom a change in use under this Sub-Article,
4) The value of a supply of goods under an installmentsale or finance lease (a credit agreement) is the cashvalue of the supply. The "cash value" , in relation tosupplyof goodsunder a credit agreement,means-
(a) where the seller or lessor is a bank or otherfinancial institution, an amount equal to the sumof:(i) the consideration paid by the bank or other
financial institution for the goods, or themarket value of the goods, whichever isthe greater, and
(ii) any consideration for erection, construc-tion, assembly, or installation of the goodsborne by the bank or other financial
. institution; or(b) where the seller or lessor is a supplier, an
amount equal to the sum of:(i) the consideration for which the goods are
normally sold by the supplier for cash; and(ii) any consideration for erection, construc-
tion, assembly, or installation of the goodsborne by the supplier.
5) Where the debtor is deemed to make a supply ofgoods under Article 3, Sub-Article (6) of theRegulations as a result of the repossession of goodsunder a credit agreement, the value of the supply isan amount equal to the balance of the cash value ofthe supply that has not been recovered at the time ofthe supply.
6) The balance of the cash value of the supply undersub-Article (5) is the amount remaining after deduc-ting from the cash value so much of the sum of thepayments made by the debtor under the creditagreement as, on the basis of an apportionment inaccordance with the rights and obligations of theparties to such agreement, may properly be regardedas having been made in respect of the cash value ofthe supply.
7) The value of goods subject to an export trade dutyincentive scheme under Proclamation No. 249/2001:
(a) that are removed for export, or(b) are supplied but not exported is the market
value of the goods8) Article 4, Sub-Article (11) of the Proclamation provides
that where the recipient of a zero-rated transfer of a goingconcern under Article 7, Sub-Article (2)(d) of theProclamation, acquired some.of the good~in that transferfor a pUI1loseother than to make taxable transactions, theacquistion of those goods is treated as a supply of goodsby the recipient in'the course or furtherance of a taxableactivity.
9) The value of the supply under Article 7, Sub-Article (8)of these Regulations shall be the ,consideration for theacquisition of the taxable activity, reduced by an amountwhich bears to the amount of'such cOl1sideratinthe sameratio as the intended use or application of the taxableactivity for making taxable tral;1sactions.bears to the totalinten~ed use or application ofti)e. taxable activity.
1~' H!f..it~ tofo6-A 'J:Jt..,. ;Jun, ~'I'C Ii! ;J-UUfP- ?)g+'} !:i!f1?il}.jI". Federal Negarit Gazeta - j'.jo. 1931'\ Decemoer, 2002-Page 1984
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8. Obligatory or Voluntary Registration and Procedure1) The Authority may waive the requirement under
Article 16of the Proclamation to register where theAuthority is satisfied that the value of a person'staxable transactions exceeds or will exceed theamount specified under Article 16, Sub-Article (1)of the Proclamaton solely as a consequence of-(a) a cessation, or substantial and pennanent
reduction in the size or scale, of a taxableactivity carried on by the person; or
(b) the supply of capital goods that are being
replaced with other capital goods to be usedin the taxable activity carried on by thatperson.
2) Article 18, Sub-Article (4) of the Proclamation
provides for the date that registration becomeseffective. While the registering person may selectthe date that the registration is to become effective,the Authority, in its sole discretion, may changethat date to the beginning of an ~~so~n~i9gpe,riQd.,
9. Divisional Registration1) A registered person and its separately-registered
division, and separately-registered divisions of ahead office registered person, are "related per-sons" for purposes of the Proclamation.
2) A separately-registered division must file a VAT
return for each accounting period (Article 26 of theProclamation). Each separately registered part ofthe entity is subject to all of the obligations imposedon a registered person, but it remains a part of theentity.
3) A registered person may apply for divisional
registraton if a single registration requiring a singleVAT return imposes an onerous compliance bur-den on the registered person. The Authority, in itssole discretion,' shall decide if the applicant willexperience real difficulties in submitting a singleVAT return.
4) A registered person may request that some, but not
all divisions be registered separately, and those notregistered separately treated as part of the entity'sregistration. . .
5) The Authority may withhold any refund under
Article 27, Sub-Article (5)(a) of the Proclamationto a separately-registered division in order to satisfythe tax, levy, interest, or penalty payabl~ by theentity or another division.
6) Supplies made by a separately-(egi$tered division
to the head office or between separately~egistereddivisions are treated assupplies between relatedpersclnsfor tax purposes, the supplier must issue taxinvoices for those transactions in aecotda11cewiththe Proclamation, and the" r~ipl~nt can claim taxcredits 0\\ the purchases to the extent"providedunder Article 21 of the Proclamation. .
1~' IuY-'if?; ~1..t-A" ;J(.'''' ;Jtt.''1 ~1'C Iu :1"UUfP' tll .,.") Iifj?; ~.,... Federal Negarit Gazeta - No.1931'IDecember, 2002-Page 1985
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7) Expenses allocated by the head office to a separately-
registered division may be treated as taxable suppliesby the head office.
8) Transactions between the head office and separately-registered divisions, or between separately-regis-tered divisions may be closely scrutinized by theAuthority to prevent the use divisional registration toobtain unintended tax benefits referred to in Article60 of the Proclamation.
9) Separate divisional registration is discretionary with
the Authroity and, to be eligible, the head officeapplicant must satisfy all of the following con-ditions: .
(a) The applicant must be a registered person for
VATpurposes, but not a person who volun-tarily registered under Article 17 of theProclamation;
(b) The application must be in writing and include
the applicant'-s taxpayer identification numberand VAT certificate number;
(c) The applicant must conduct its operation as an
incorporated company;(d) The applicant will experience an onerous com-
pliance burden if it must submit a single returnfor its entire business operations. The applicantmust describe in detail the problems likely to beencountered if divisional registration is notapproved, and the reasons why a consolidated
. VAT return for the entire business for each
accounting period cannot be submitted by the
due date for each .tax period;(e) The division for which separate registration is
requested must maintain an independent ac-counting system. This requires the division torecord its receipts and payments and producefinancial statements separate from its headoffice and/or other divisions;
(f) The applicant must already be preparing
divisional accounts before consolidating them.(g) The division for which separate registration is
requested must be separately identified byreference to the nature of its activities or itslocation;
(h) Each division must use the same accounting
period and the same year-end date as the entity.10) The Authority may impose additional conditions before
approving an'"applicationfor divisional registration, ormay impose different conditions on a newly-registeringentity.
11) The registered person must file a separate applicationfor each division seeking separate registration on theform and containing the information required by theAuthority, or a newly-registering person must submit
an applicaton for registration and an application fordivisional registration at the same time.
'lA" Iif'" ~1..~l\ );J&"" ,?1L"14J1'C Ii ;J-UUfP'.gli+1 Iilfj~ '"f". Federal Negarit Gazeta-No. 1931I1December,2002-Page 1986
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12) Each separately-registered division will be issued a
taxpayer identification number and VAT certificate
number that identifies it as a division of the entity.
13) Each registered division must issue tax invoices
listing its unique taxpayer identification number
and VAT certficate number.
14) For purposes of the registration threshold under
Article 16 of the Proclamation, the supplies of each
separately-registered division are included as sup-
plies of the entity.
15) The Authority may require the allocation of tax
credits under Article 21, Sub-Article (22)(c) of the
Proclamation to be made on an entity basis, rather
than on a division-by-division basis.
16) The home office registered person may apply in
writing for the cancellation of the separate regis-
tration of a division, or the Authority may initiate a
cancellation of a divisional registration. The
following rules shall apply:
(a) Unless the Authority approves a shorter period,
the separate registration of a division must
remain in effect for not less than two years;
(b) If an entity or a division ceases to satisfy any of
the conditions imposed on divisional regis-
tration, the entity must notify the Authority in
writing of the change within 30 days of the date
any condition to be met;
(c) The Authority may cancel a divisional regis-
tration if the conditions are no longer satisfied
or if the Authority believes that cancellation is
necessary for the protection of the revenue;
(d) The Authority shall have sole discretion to
<;letermineif the divisional registration shall be
allowed to continue;
(e) The cancellation of divisional registration shall
be effective from the date specified by the
Authority .10. Cancellation of Registration
1) A registered person must apply for cancellaiton of
registration within 30 days of the date the person
ceases to make taxable transactions.
2) The application for cancellation under sub-Article
(1) shall be in writing, shall state the date upon
which the person ceased to make taxable transac-
tions, and shall state whether or not that person
intends to make taxable transactions within 12
months trom that date.
'l~' Hil'it?; t..fulrA ~;J~'''' ;JlI,111 ~'I'C Iii ;rUUfp' ?)g<I>'}Iiif1?i'}'9". Federal Negarit Gazeta-No. 1931'1 December, 2002 Page 1987
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3) The Nlthority shall appmve anapplicaiton for thecancellation of registration under "(2) unless theAuthoirty has reasonable grounds to believe that theperson will male taxable transactions at any timewithin 12 months from the date of cessation.
4) While the cancellation of registration generally takeseffect on the date of cessation, if .the Authoity issatisfied that the registred person' did not' maketaxable transactions from the date the registrationtook effect, the Authority can cancel the registrationretroactive to that effective date,
5) When registration is cancelled,' to.the extentprovided under Article 4, Sub-Article (4) of theProclamation, the registered person may he deemedto have sold the goods onhanQ ill, a , taxabletransaction.
6) Any obligation or liability under the Proclamation,including the furnishing of returns, of any person inrespect of anything done by that person while theperson was a registered person, is not affected bycancellation of th~ person's registration.'
11. Tax credit Rules1. No tax credit is allowable under Article 21 of the
Proclamation unless:'(a) a tax invoice, or debit or tax credit note, in
relation to the supply, has been provided inaccordance with Articles 22, 23, or 13 of theProclamation and the registered person
-claiming the tax credit is holding that suppor-ting document (unless an invoice is notrequired) at the time anYJeturn in respect of thesupply is furnished; and
(b) a Customs Declaration as prescribed under theCustoms Proclarpation, or a document issuedby the Customs Authority evidencing paxmentof tax in relation to an import is held by theregistered person claiming the credit ~t the time
'any return in,respect of Jhe import is furnished.2) The cost Incurred to begin or terminate a taxable or
exempt activity are taken into account in cal-culating the allowable tax credits under Article'21of the Proclamation. '
,
3) Article 21, Sub-Article (3)(a)'of the Proclamaiton,denying a tax' credit on the acquisition of apassenger vehicle, dose not apply to'a commercialtruck or other vehicle designed and usedprimarilyfor the carriage of goods. '
.,
>
'
4) For purposes of Article 21, Sub-Article(3)(b)oftheProclamation, a tax credit is not allowed for VA.:r
." -".
qn the purcha;;e bya registered person,of(estaurant, ". m~als fen- executives, emplc>ye~ or customers, or
for, VAT on the rental of a,l9dge',andthe ct)'4fge for, food at a retre<\t for eml?loyees/T,heeJisaBowance
,rule, does nGt ,apply \0, pur~h~es Qf '.~~t~ain-
.!TIent"by ,,~.registere(tpersoP;jengaged, in thebusiness qf selling' ~entertainIl)ent':. (sl!ch as a. ,. . ~ , ~
"restaurant} if the, p.urcha.~esare,\jse,d din~ct1~ ~nthe
provision of taxable entertainment.
1~' Xi!f.it~ t..1..Ir/.\ ~;J~-'" ;1''""1 ct'1'C H!;rUVtp' ?if 4'"} Ii!n?; '}.9". Federal Negarit Gazeta - No.1931soDecember, 2002-Page 1988
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5) A person who registers after VAT becomes effectivecan claim credit for tax on goods on hand when theregistration takes effect if the goods were acquiredwithin the six month period before the effective date,and the goods are to be used in a taxable activitycarried on by the person after registration.
6) Where the total tax credits available to registeredperson for an accounting period exceed the totalamount of tax chargeable on taxable transactions forthat period, the amount of the excess is dealt with inaccordance with the refund rules under Article 27 ofthe Proclamation.
12. Reverse Taxation1) The value of an import of services taxable under
Article 23 of the Proclamation generally is theamount of the consideration that the recipient isobliged to pay for the services, except that if thesupplier and the recipient are related persons, thevalue of the import is its market value.
2) Where a portion of the consideration charged forimported services taxable under Article 23 of theProclamation represents tax that is not accountedfor separately, the value of the import is theconsideration under (1), reduced by an amountequal to the tax fraction multiplied by that con-sideration. The tax fraction is r(100 + r), where' 'r"is the rate of ta x applicable under Article 7, Sub-Article (1) of the Proclamation.
13. Transactions by Agent1) Where a taxable transaction has been made by an
agent on behalf of the agent's principal as specifiedunder Article 24, Sub-Article (1) of theProclamation, and the recipient of the taxabletransaction is a registered person, the agent mayissue a tax invoice in accordance with theProclamation in relation to the transaction; and theprincipal shall not also issue a tax invoice inrelation to the taxable transaction.
2) Where a taxable transaction has been made to anagent on behalf of the agent's principal and theprincipal is a registered person, at the request of theagent, a tax invoice in relation to the taxabletransaction may be issued to the agent; and a taxinvoice shall not also be issued to the principal inrelation to the taxable transaction.
14. Form and MannerofFiling Returns.A return required by Arti~le 26 of the Proclamationshall be in the form prescribed by the Authority, andshall:-
(a) state the information necessary to calculate thetaxpayable for the accounting period in accor-dance with Article 20 of the Proclamation, and
(b) be furnished in the manner prescribed by theAuthority.
15. V,ATRefund. .1) Article 27, Sub-Article (5)(b) of the Proclamation
provides the Authority is not obliged to refundexcess credits if the amount to be refunded is notmore. than 50 Birr. If the amount eligible for refund is~O Birr or l.~ss,thi.sa~ount can be carried forwardand credited against tax due in the subsequentaccounting period.
1~ Iitl-tit t..1..t.t.\ ~;MT .7""11~'I'C Iit ;ru'1P' t!1 +1 Iiin~ ~-,... Federal Negarit G~eta- No. 193111December, 2002-Page 1989
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2) Where a registered person applying for a tax refundhas failed to furnish a required return, the Authoritymay withhold payment of any amount refundableunder Article 27 of the Proclamation until theregistered person furnishes such return.
3) If the Authority does not pay the refund in a timelymanner as provided under Article 27, Sub-Article(6), the Authority shall pay interest calculated fromthe date on which the refund was due until the date onwhich the payment of the refund is made.
16. Assessment of Tax1) The Authority may issue an additional assessment in
a variety of circumstances, including the case where:(a) a person fails to furnish a return as required by
Article 26 of the Proclamation fails to furnish animport declaration as required by Article 5 ofthe Regulations;
(b) the Authority is not satisfied with a return or:~nportdeclaration furnished by a person;
(c) the Authority has reason to believe that a personhas become liable for the payment of an amountof tax but has not paid such amount;
(d) a person, other than a registered person, sup-plies goods or services and represents that tax ischarged on the supply;
(e) a registered person supplies goods or servicesand the supply is not a taxable transaction or is ataxable transaction charged with tax at the rateof zero per cent and, in either case, the regis-tered person represents that a positive rate oftaxis charged on the transaction; or
(f) the Authority has determined the liability of anyperson in terms of Article 60, Sub-Article (2) ofthe Proclamation.
2) The person assessed:(a) in the case of an assessment under Sub-Article
(1)(d) or (e) of this Article, is the person makingthe supply; or
(b) in the case of an assessment under Sub-Article(1)(f) of this Article, is the person whoseliability has been determined under Article 60,Sub-Article (2) of the Proclamation; or
(c) in any other case, is the person required toaccount for the tax under the Proclamation.
3). In making an additional assessment under Article 29of the Proclamation, the Authority may estimate thetax payable by a person.
4) Where an additional assessment has been madeunder Article 29 of the Proclamation, the Authority
'"'shall serve a notice of the assessment on the personassessed, which notice shall include-(a) the tax payable; and(b) the date the tax is due.
5) The production of a notice of assessment under Sub-Article (4) of this Article or a certified copy of anotice of assessment is receivable in any proceedingsas conclusive evidence that the assessment has beenduly made.
'lA- llif1 ~~A ~;J~"" ;JtLtIJ 4r'1'C 1,t1C fi +,!if2~ ,..,... Federal Negarit Gazeta- No.1 3rdDecember, 2002-Page 1990
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6) No assessment or other document purporting to bemade, issued, or executed under the Proclamation orthis Regulations shall be:(a) quashed or deemed to be void or voidable for
want of form; or(b) affected by reason of mistake, defect, or omis-
sion therein,if it is, insubstance and effect, in conformity with theProclamation or this Regulation and the personassessed, or intended to be assessed or affected by thedocument is designed in it according to commonunderstanding.
17. Seizure of Property1) While the Authority must give 30 days notice under
Article 31, Sub-Article (4) of the Proclamationbefore seizing property of a person in default, aftermaking reasonable enquiries, the Authority does nothave sufficient information to identify the person onwhom the notice should be served, the notice shall bedeemed to have been served and then it shall proceedto seize the property.
2) The Authority may authorize the delivery of goodsseized under Article 31, of the Proclamation to theowner of the goods or the person who had custody orcontrol of the goods immediately before seizure,where that person pays the tax or other amount duethat gave rise to the seizure.
18. TransitionalRules1) In this Article:
(a) "qualifying goods" means an import or pur-chase of goods, including capital goods;
(b) "repealed legislation" means The Sales andExcise Tax Proclamation No. 68/93; and
(c) "sales tax" means the sales tax imposed underThe Sales and Excise Tax Proclamation No. 68/93.
2) The repealed legislation, including the rules gover-ning the levy, payment, assessment, reporting, andrecovery of those taxes, continues to apply to asupply or import that takes place prior to the date onwhich the Proclamation comes into force.
3) Every' appointment made under the repealedlegislation and subsisting at the date of commen-cement of the Proclamation shall be deemed to be anappointment made under the Proclamation;
4) Notwithstanding Article 21, Sub-Article (1), of theProclamation in calculating the amount of taxpayable by a registered person in respect of the fIrstaccounting period after the tax becomes effective,the register~ person may claim as an amountcreditable under Article 21, an amount equal to thesales tax calculated in accordance with Sub-Article(6) of this Article and creditable under Sub-Article(7) of this Article.
5) For purposes of Sub-~icle (5) of this Article,(i) where a registered person held, at the end of the
last business day prior to the date the valueadded tax comes into force, qualifying goodsbeing g~ acquired not more than six (6)months before the tax comes into force; ,and
1Jt !itnli ~1.t.l\ ";"J~:";Inti} ~1'C!it ;1'UUf".tJg+' !itfj?; '}.9". Federal Negarit Gazeta-No. 1931stDecember,2002-Page 1991
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,(ii) the Authority is satisfied that sales tax has been
charged to the person on a sales invoice andpaid on the acquisition or import of thosegoods, and the sales tax has not been rebated,
the amount of the creditable sales tax shall be theamount of such taxes paid on such goods, but withrespect to each item qualifying for the tax shall notexceed the amount of tax which would have beenpayable had the goods been subject to tax chargeableunder the Proclamation..
6) If, in any tax period, a registered person has sales taxcreditable under Sub-Article (5) of this Article, theamount creditable is deemed to be tax creditableunder Article 21 of the Proclamation and is subject tothe provisions of Article 27 of the Proclamationrelating to the excess of credits over the amount oftax charged for the accounting period.
7) No credit shall be allowed under Sub-Article (5) ofthis Article for any sales tax paid in respect of theacquisition of any goods if the VAT imposed on asupply or import in acquisition of those goods afterthe effective date of the Proclamation would not becreditable under Article 21 of the Proclamation.
8) A person may claim a credit under Sub-Article (5) ofthis Article for sales tax paid on qualifying goods onhand on the date on which the Proclamation comesinto force, only if the person is a registered person asof such date.
9) A person claiming a credit under Sub-Article (5) ofthis Article shall submit with the fIrst VAT returnafter the tax comes into force an inventory of allqualifying goods on hand at the beginning of the firstday on which the Proclamation comes into force,supported by documentary evidence of the paymentof sales tax.
10) A disallowance of a credit for sales tax imposedbefore the date on which the Proclamation comesinto force, shall not be treated as a disallowance forpurposes of Article 4, Sub-Article (5) of theProclamation.
11) Where a contract is concluded between two or moreparties before the Proclamation comes into force,and no provision relating to tax is made in thecontract, the supplier shall recover from therecipient, tax due on any taxable transaction madeunder the contract and made after the date on whichthe Proclamation comes into operation.
12) Wher~ a contract concluded after the date on whichthe Proclamation comes into operation does notinclude a provision relating to tax, the contract priceshall be deemed to include tax and the supplierunder the contract shall account for the tax due.
13) Subject to Sub-Article (16) of this Article, if inconnection with a supply of goods or services,
(a) title to goods passes, delivery of goods is madeor services are rendered after the date on whichthe Proclamation comes into force; and
(b)payment is received or an invoice issued withinnine months before that date,
for the p\4rP°ses .of determining the accountingperiod in which the supply occurs or a tax credit isallowable, the payment istreated as having beenmade or the invoice is treated' as having been issuedon the date on which the Proclamation came intoforce.
14)' If services subject to sales tax were rendered beforethe date on which the Proclamation came into forceand payment is made within four months after theProclamation came into force, VAT is not imposedon the supply of the services.
n' :OifU ~fulrA ~~~..,.:Jfi."I cJ:TCIii :t'1..,P' ~I"" Iiifj~ ,.,... Federal Negarit Gazeta-No. 1931"December,2002-Page 1992
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15) If goods are leased under an agreement thatprovides for periodic payments or if servicessubject to sales tax were rendered during aperiod that began before and ended after theProclamation came into force, VAT is imposedon the consideration for the services renderedafter the Proclamation came into force, exceptthat to the extent the consideration for theservices rendered before the Proclamationcame into force is paid more than four monthsafter the Proclamation came into force, theconsideration is treated as consideration for therendition of services on the day after the end ofthat four month period.
16) Notwithistanding Sub-Article (13) of this Ar-ticle, if construction, manufacture or extensionof building or civil engineering work is perfor-med under a written agreement executed beforethe Proclamation came into force and theproperty is made available to the recipient afterthat date, VAT is imposed only on the value ofwork performed after that date if the value ofthe work on the day before the Proclamtioncame into force is determined in a mannerapproved by the Authority and is submitted tothe Authority by the end of the supplier's firstVAT period after VAT comes into force.
17) If immovable property is provided under arental agreement, for a period that commencesbefore and ends after the date the Proclamationcomes into force, the consideration for therental shall not include the amount attributableto the period that ends before the effective dateof the Proclamation.
CHAPTER 2Exemptions
19. Dwellings1) A "dwelling," defined in Article 8, Sub-Article
(1)(b) of the Proclamation, includes that areasurrounding or appurtenant to the dwelling that isnecessary for its enjoyment, but not farm landadjacent to a dwelling. The land surrounding adwelling complex,including the driveway, paths, gardens and lands-caped grounds for the use and enjoyment of residentsis part of the dwelling.
2) A registered person who purchases a new or usedproperty for lease as a dwelling is denied tax creditsfor tax on any costs attributable to the exempt leaseof the dwelling.
3) If an employer provides a dwelling to an employee asa fringe benefit, the exemption for the supply underArticle 8, Sub-Article (2)(a) of the Proclamationtakes priority over Article 4, Sub-Article (3) of theProclamation treating fringe benefits provided toemployees as supplies by the employer in the courseor furtherance of a taxable activity. The employerunder Article 21 of the Proclamation is denied taxcredits for tax on costs attributable to the exemptfringe benefit.
4) A sale of a parking space that is part of the dwellingto the purchaser of a dwelling, or the le'ase of aparking space as part of a -lease of a dwelling isexempt from tax. '
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,20. Financial Services
1) Financial services as defined in these regulationsare exempt from tax under Article 8, Sub-Article(2)(b) of the Proclamation, whether provided forexplicit or implicit fees.
2) The financial services exempt from tax include thefollowing:(a) granting, negotiating, or dealing with loans,
credit, credit guarantees, or any security formoney, including management of loans,credit, or credit guarantees by the grantor; or
(b) transactions concerning money (including theexchange of curency), deposit, savings, andcurrent accounts, payments, transfers, debts,cheques, or negotiable instruments, other thandebt collection and factoring; or
(c) provision of credit under a hire purchaseagreement or sale of goods, but only if thecredit is provided for a separate charge, and theseparate charge is disclosed to the recipient ofthe goods; or
.
(d) to the extent provided in this regulation,provision, or transfer of ownership, of aninsurance policy, or the provision of rein-surance in respect of any such policy; or
(e) provision, or transfer of ownership, of aninterest, of an interest in a scheme wherebyprovision is made for the payment or grantingof by a benefit fund, provident fund, pensionfund, retirement annuity fund, or preservationfund; or
(t) the arranging of any of the services in (a) to (d)
i:.,
; or(g) provision of int~rmediation services by a
buy-aid society or medical-aid fund;3) For purposes of these regulations, the following
definitions apply;(a) "cheque" includes a postal order, a money
order, a traveller's cheque, or any order orauthorization (whether in writing, by elec-tronic means, or otherwise) to a financialinstitution to credit or debit any account;
(b) "currency" means any bank note' or othercurrency of any country, other than when usedas a collector's piece, investment article, itemof numismatic interest, or otherwese than as amedium of exchange;
(c) "insurance policy" means insurance coveredunder a policy treated as general insurancebusiness or as long term insurance business
"-under Proclamation No.86/1994: Licencingand Supervision of Ins,urance Business (the"Insurance Proclamation");
(d) "merchant's discount" means a charge madeto merchants for accepting a credit or debitcard as payment for the supply of goods orservices, or a similar charge made by a buyingorganisation.
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4) In addition to the definition of financial services
under these regulations, the Minister may issue a
directive listing financial services and specifying
their treatment as taxable, exempt, or zero-rated
supplies. The Minister may modify any such list,
including changes required by the introduction of
new financial services or modification of the nature
of the services specified in the list, with any such
modification or cancellation having prospective
effect only.5) Financial services that are listed as exempt under
these regulations are exempt, whether rendered by
a registered bank or financial institution or by any
other person.6) Some services are not exempt under Article 8,
Sub-Article (2)(b) of the Proclamation, whether or
not they are rendered in connection with an exempt
financial service. They include, but are not limited
to the following:(a) Legal, accounting and record package
services, actuarial, notary, and tax agency
services (including advisory services) when
rendered to a supplier of financial services or
to a customer of that supplier of financial
services;(b) Safe custody for cash, documents or other
items;(c) Data processing and payroll services;
(d) Debt collection or factoring services;
(e) Management services, such as management of
a superannuating fund;(t) Trustee, finanacial advisory, and estate plan-
ning services, and(g) Leases, licenses, and similar arrangements
relating to property other than a financial
instrument.7) For purposes of Article 20, Sub-Article (6) of these
Regulations, accounting and record package
services include a financial clearing system that
may be part of the settlement process, the posting of
financial transactions to customers' accounts the
maintenance of customers' accounts, and the ren-dering of services ancillary to the services just
described.8) The mere acquisition of a debt is not a taxable
transaction, including debt acquired by a factor.
The services related to debt recovery, litigation, and
the management of the recovery of the amount due
from debtors are taxable, including sales accoun-
ting services under a factoring arrangement and
other services related to factoring.
'X' IiUli ~1.&-l\ ~;1.~"" ;1",11) "'PC Ii :t"1UfP'~I"',) IiUli ~'9'" Federal Negarit Gazeta - No. 1931"tDecember,2002-Page 1995
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9) Zero-rated exports of financial services include:(a) financial services rendered in connection with
an export of goods;(b) financial intermediation services rendered in
connection with a loan to an unregistered,non-resident person to finance the export ofgoods; and
(c) fees imposed by an Ethiopian bank on banking
services rendered to a non-resident who isoutside Ethiopia when the banking servicesare rendered, if they do not come within theexceptions in Article 35 of these Regulations.
10) If an exempt or zero-rated financial service is
incidental to a main supply, or if such a financialservice is the main service, the rules in Article 5 ofthe Proclamation on mixed supplies apply.
11) Financial institutions and others providers offinancial services that make both taxable (in-cluding zero-rated exports) and exempt suppliesmay claim taJ!<credits under Article 21, Sub-Ar-ticle (2) of the Proclamation only on purchases(including rentals) and imports used in making
taxable transactions.12) The provisions under Article 21, Sub-Article (2)
of the Proclamation on the allocation of tax creditsbetween exempt and taxable transactions do notapply (and full tax credits are allowed) to aregistered person who derives more than 90percent of the person's total supplies in anaccounting period from taxable transactions (Ar-ticle 21, Sub-Article (3) of the Proclamation). Forthis purpose, wh~n calculating the value of thetaxable and total supplies, the supplier should usegross figures for supplies other than inter-mediation services and use net interest amounts(interest income less interest expense) for finan-cial intermediation services.
13) The Value Added Tax Directive to be issued by
the Minister of Revenue may give the Authoritydiscretion to determine the allocation of taxcredits between taxable and exempt supplies on abases that the Authority considers reasonable.
14) Regardless of method used to allocate tax creditsunder Article 21 of the Proclamation, the regis-tered person must retain records to substantiate themethod used. The Authority may require financialservice providers to submit statistical data onvarious product lines.
15) The exemption for financial services extends tothe premiums for insurance cover under aninsurance policy.
16) Premiums attributable to riders attached to aninsurance policy that is exempt from tax constituteexempt services if the riders are only incidental tothe provision of the insurance cover.
1~ Ii!f1i ~1..IrA .,..?~..,. .?lLtfJ 4r'l'C Ii! ;t-1",r' 1)1 +'} Iiifj~ 'i.,... Federal Negarit Gazeta - No.1931sIDecember, 2002-Page 1996
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17) Services covered in riders to exempt
insurance policies that are not incidental to the
insurance coverage are taxable to the extent that
the independent supply of those services would
be taxable.
18) .The Authority shall have the sole discretion to
determine whether a non-insurance rider is in-
cidental to the main insurance policy.
19) The premium on an insurance policy is exempt
only if the premium is charged on a policy issued
by a person who is licenced to issue such policies
under the Insurance Proclamation.
20) Commissions and other fees earned by brokers!
agents who provide insurance coverage for their
customers do not come within the exemption for
insurance as a financial service.
21) An insurance policy does not include insurance
cover on a warranty in respect of the quality, or
performance of tangible property.
21. Supply or import of securities
1) The exemption for securities under Article 8,
Sub-Article (2)(c) of the Proclamation covers:
(a) transactions relating to the issuance, transfer,
or receipt of, or any dealing with shares,
stocks, bonds, treasury bills, or other debt or
equity securities, other than custody services;
(b) transactions relating to financial derivatives,
forward contracts, options, or similar arran-
gements, and
(c) transactions relating to the creation, issue,
transfer, assignment or receipt of, or dealing
with, an option or warrant relating to securities
included in (a).
2) The underwriting of the issuance of securities
generally is exempt from tax. However, the exemp-
tion for underwriting services does not extend to
other services obtained in connection with an
underwriting, such as advertising and printing
costs, accounting, legal, and advisers' fees.
3) The exemption for securities or for financial
services does not include management or adminis-
trative services provided to a business whose
principal activity is investing funds for sharehol-
ders, members, or other persons.
4) For purposes of this Article,
(a) "currency" means any banknote or other
currency of any country, other than when used
as a collector's piece, investment article, or
otherwise than as a medium of exchange;
,.. 111ft ~A .~~. ~.48t+rc D :I"'t'1,..,.+, DOl ,.,.. FederalNeaaritO~ta- No.1931-December,2002-Pqe 1997
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;" .
,(b) "debt security" means any interest in or right to
be paid money that is, or is to be, owing by any
person, but does not include a cheque or an
interest or right that is a lease, licence or other
similar arrangement in respect of immovable
property; and
(c) "equity security" me~s any interest in or right
to a share in the capital of ajuristic person or the
interest in a close corporation of a member
thereof.
22. Import of gold fOTNational Bank of EthiopiaThe exemption for the import of gold to be transferred tothe National Bank of Ethiopia under Article 8, Sub-Ar-ticle (2)(d) of the Proclamation applies to imports by orfor the National Bank, regardless of the level of purity ofthe gold or the form in which it is imported.
23. Religious OTChurch-related Services
1) The supply of religious or church-related services bya religious organization is exempt under Article 8,Sub-Article (2)(e) of the Proclamation. Generally,services rendered by a religious Qrganization that areintegral to the practice of that religion come withinthe exemption.
2).The activities of a religious organization that com-"petewith the private sector or that are not integral tothe practice of the religion do not come within theexemption. If the value of these taxable suppliesexceed the threshold under Article 16 of theProclamation, the religious organization must regis-ter. .
3) Article 8, Sub-Article (2)(p) of the proclamationexempts books and other printed material. Thisexemption for bopks applies to suppli~ of books or
, other printed material by a religious organization.4) The donation in kind or money (such as church plate
donations) or services are not subject to tax if there isno direct link between the payment and any benefitreceived by the donor.
S) A receipt by a religious organization from a businessis not a supply for consideration if the receipt merelyentitles the ttansferor to be mentioned in a brochureor program, but if a religious organization receivespayment when it sells space in a brochure orprogram, the receipt is a supply for consid~ation thatdoes not come within the exemption for religious orchurch-related services.
6) A religious organization that operates taxable ac-tivities through a develoPlDent commission orsimilar entity or through ~ division or branch mayapply for or be required to separately-register one ormore of the commissions, divisions, or branches asprovided under the Value Added Tax Minister ofRevenue Directive.
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"1A~""-f"f h'i Om.'i 1'0'+ "'I.Ul'f:C'Oo,.lDlI) " ,'1). Article 8, ,Sub-A11i~le(2)(t) of the Proclamation
oooo!,' OOtPl-1- Othb.9" -1-6tf'" '-o~ f"'l.l1m- . exempts the ~l,KteringQhnedical services,and the
'iTm- "'-ot\~ f"'"l"~T OD~t"'"f m" ."1C import and supply of prescription, drugs specified inl1.1{1-'i0"1C ~ll1' l1Ji'm-h;l-bll-~' h,)""7.II')' th~ 'directives'jssuedby the 'Minister of Health.~"~~~AII 1lt\1I'~9" Onii:' f.,.l1m 0.11'')9'' .' .' '. ;.
'. .
CI~II',)9" : nii:'~') f LfJOotJ)8;l-""'I.~ m~9" """Me9ical servlces~ expmpt,w~ether provided With
"ll"'~ aPI') 0.11'')9'' f ihn9"'i "1A'"1l\-1: hflU or without charge and wh~er paid,by the patient or
.fl;l-:f f"'Ul"~-1-') 1Jct\-1-1Jc).;l-1P"ff"7.f":l." hll'~"
resident or, any 'thirdparty, if the medical services
h~nl1: ~, ~1I''iIM meettwo conditions:. V) fii1n9"'i "1A'"1""i: f"'l1m~ O;l-m.,.
f(hn9"'i "'*9" m~9" fihn9"'i "1A'"1""-1-, h'»)ll11' UY.: O"'l1m~ Clt\"..., m~9"
OlJct\-I:9" hll'~: he;
.,< h) f1lI..VJ',.')-O OOtPl-1- h;l-nll- ~, 1\.11'')f"7."fA
"1A.,""-1- hll'~uI' f(hn~'i"1A 1""-1- h;l-nll- ~, l\.11',) f"7."ft\~
n;l-m~ f (hn~'i "'*9" f.,.l1m fl.1I',) ~~II t\flU,,').,.;t "L~~9" f;l-m-t fihn9"C; "'*9" f"7.Clt\~
fihn9"'i"1A'"1A-+ h'))ll11" L.+Y.: f"'l1m~.')A~1 ",~",.') fCJ"lJ'ht;m-,)O-1- ,"'(i.~: 1I'1l'C;l-Ai f"'lcr.t\!:.. 1'\1A:'"1tr-Tooll~ "'*9"') m~9"
nl\.tn1, ~(iJ.).tr,'6-A" "C... ~ihn9"'i 1'\1(.\'"1tr--1-h;l-nll-~' 1\."') f"7."ft\~
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U Y.: f"'l1m~ Clt\"..., f"'l.Clt\~ Om.'i 1'0'+"7.tll'f:COOoD1I1-o ,t\O-1-'i "'0011'"1(1,'"'Il~1Mi
", f"'l1m~ p-n"'Ci fCl,"hA thtL9-i fm.'i l.-;-1-i fm.'i,OO!.')')i ,,"fl"'f:~'Cll-1- "'i "'ft."f1r fm.'i "1A..,tr-..,. f"'l.l1n1. qt\oo-,1P"f') ~lA9"~AII
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'h?.\.l11' L:J' Y.:.O"'l1th~ ""00-' ""1P1' ~1I''i Au
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A"'~I\1i ?t}"7. f"'l.l11' fihbre; "1A'"1tt--1-~"t:Jl.lJcr ~..,-o A'i ,001J'" t\1b-O"o. 'h'iA;l-"~Y!" O.,.t\~ O'"1Af"7."l-',) .1',)'+'l:i "'~-f
,m~9" O"'QDc)"1i"~:J'h~W- ih~~"'~ f6"-1-.,,~tf;~,,-1-6Ct~;l-"'IY;l'"11,r~,t;Q.9"~A~~, .
i' ,AJJ.U1'\,)"';t,}~ll 1'\').,.;r (i)"L~~9"ihiJ'nll- ~,fll'~-1- fihb9"'i "1A..,tr--f"f,. f"7.h"'~""')~Q;},9" ~~II
'0) ,.,.t\f'bii:' ''''I~mfc}ftTm- otrit'C;t-A-,...(J)f,'r Onl\.tb fihn9"'i~ '''1A'"1tr--1- "I1A
"j;. ,1I'~(J)"ff1ll.ilm- 00 Y;~t-f'fi" .
v\) ;f"~.-M1,f~~ m~9" ""ito"f f9":Coo~ "1A'"1.;
.. "t;~; , ,."ft!' ., .;di) "fihb9!'i l'11A.,, 1- Ooollm-}r; u.-1- 1'.}9"
,,~ f"7.~~ OflU 1'\')-t;t 1(J-it, ~..-t1\ (1;)
f"'UlU"," fihb9"'i OO1A1,1P"ft
~~"'...~'.:~
(a) they-are re~red iDaqualified medical facility
or by a qualified medical practitioner, or both,
and.
(b) they qualify as e~~mpt medical servi~s in this
Article of the Regulations.
2) To be exempt, medical services must be rendered at a
. qualified medical facility. For purposes of this
. Article, 'a q_ifte4 medic31',facility includes theoffices of aqualified medica1practitioner, a hospital,
. ma~rnity home,ort~inic./-' ~"'+"''''
- ";,;-~, ;."-~' . .'
,,),
,"'"~.
3} A q~ifi.e4.wedic~ sC;rvi~is Fx~mptHjt is provided
by, a'qualified "roedical practitioner...A qualified
medical practitio~er includes a doctor,bealer, dres-
"ser,'he'illth' officer, physical therapist, and other
. heal~ ~are p~vid~ who is requited to register and- ",
"
.-,.-',,' >".
>t,,_c.
'.:.. .
~
.registercxl with the Ministry,of Health.
4) 'Toqu~ify for the exemption, medical services must
:"consistol qu'alifiedservices (including meals and
~OII¥DOdat~oJls)i~a, qualifi~ medical facility, and'"
.' -", :1-'"'. ''';,'
.,
,
must involve the rendering Qfmedical, services by a,
qualified medical "practitioner. Medical services'.. involve'!tbe" d~rtosis, 'treatment, prevention, orr
'amelioration 6fadise~e, inci~aing ilibprqmotion of
ment;l1ttealth. ,'
,5) for purposes>of Sub-Arti~l~ (1) of this Article,. , seririces that <tUalify"as exempt medical services.
inc,lvdethe'~eivicespro~i~~ to a residentor patient
.'~
by .f> qualifiedi.medi~aI'''.prACtitioner.. ill .a qualified
facility, u' we1I''iaS.meals and accommodations,
"nursi1\g ahd personal' care; and assistanCe with daily:...,..,;
,~
""
"
<f:.-,~.
.'f.:", '!\
.living 'activities to, meet the needs of the resident or.! '.;
~5;:. '> ',-
'~"" .
patient.'. -~
6) ('For, purposes of S~b-Ar1iclc; {I) of this Article,
'" exempt medical semCe'Sirtc1udethe'following:
(a) medicines arl(1ilrugstltatare issuedin a hospital~.." '-'-;
~..,
'''\''~'"";:""IJ~;'~ -'-.
:}':-:~:. , ~
".:
'or,clinicA)f 'YQiS~ ~~ ls;no~epara~charge;
(b). ~laporatory,~.ra~, 9r~er diagnos~ service;. (C)f:medicaUlevicesllSdefinedin Sub-Article(7)of, ;',
tAis;Arti~e 'ffiitf~ prJvided as part of the,', ~ ~150..". .~~., ;;'
',-""'~~ ,;:"1. ,'f .: . t ,*':,
'
.~ .
supply' of qualified riiedical services;:
11"IItI21lJ./,oA ~;I&+;lUll) we II ;I1"1P' II +1 Illn 't.,... Federal Negarit Gaze.ta-No. 193111December,2002-Page 1999 ~
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O"'A"'~ ~lJr T/o..,."f.A) 0OD-1"ft.~ ~'i O"tiicft.-t Jt'ith) n-A"7(\~ TrUCT A"7h'f.'f.:r- ''''~~OD-
-t-tlfD"f' "'~ OD-1"7IPAm~9'"f' 'A" OD-1
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-t-tlfD"f'
(d) the use of operating rooms, case rooms, orI
anesthetic facilities, including necessary ;
equipment or supplies;
(e) the use of radiotherapy, physiotherapy, or
occupational therapy facilities in rendering
exempt medical services;
(f) accommodation and ~eals (except in a res- '
taurant or cafeteria available to persons other
than patients or residents) provided to patients"
or residents in the course of receiving exempt.
medical service;(g) services rendered by the medical facility staff
(including orderlies or technicians) in connec-
tion with exempt medical services;
(h) dental, periodontal, andendodontal services
rendered in connection with a disease, trauma,
or congenital deformity, but not for general
dentistry or for cosmetic reasons; and
(i) psychoanalytic services.
7) For purposes of Sub-Article (6)(c) of this Article,
medical devices means devices that are supplied to a
resident or patient in a qualified medical facility,
supplied to aqualified medical facility, or supplied
on prescription in connection with the rendition of
qualified medical services, iflcluding:-
(a) a respiratory or heart monitor, dialysis machine,
or feeding utensil for use by an individual with a
disability;
(b) a medical or surgieal prosthesis or orthopedic
aid provided as part of the rendition of qualified
medical services; and
(c) medical or surgical equipment supplied to a
qaualified medical facility, or the sale or rental
of such equipment to a patient or resident.
25. Education Services ~
1) Article 8, Sub-Article (2)(g) of the Proclamation
exempts education services rendered by educational
institutions, and child care services at pre-school
i~stitutions. Qualified charges for education services
are exempt if the services meet two conditions:(a) they are specified in these regulations; and
(b) they are provided to students by a qualified
educational institution.,.2) T9 qualify for the exemption, the services must be
provided to students by an accerdited:
(a) pre-primary, primary, or secondary school;
(b) technical college or university; or
(c) institution established to promote adult
education, vocational training, technical
education, or education or training of physically
or mentally handicapped persons.
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fD7..L8OUm-'}h~' .e.aJ.9"~1\-1I
Federal Negarit Gazeta - No.1931nI December, 2002-Page 2000
3) An educational institution in (2) is qualified, whether
it is a private school operating on a for-profit basis, or
a non-profit organization, church, or charity, or a
department of government.
4) An educational institution in sub-Article (2) is a
qualified institution only if the institution is ac-
credited or is being evaluated for accreditation by the
accrediting agency at the time the services are
rendered.
5) The following categories of services qualify as
exempt education services:
(a) course of instruction provided to students at a
qualified education institution;
(b) qualified meal plans, and other associated
goods or services provided in kind as part of the
education program of a qualified provic:ierof
education services;
(c) instruction in, or the administration of ex-
aminations, if provided by the educational
institution; and
(d) instruction or tutoring related to a qualified
course.
6) School bus transportation to and from pre-primary,
primary, or secondary schools is an exempt
education service if it is provided by the school
authority, not if provided by a private company
under contract with the school authority.
7) Qualified charges for exempt education services
include:
(a) charges for tuition, facilities, and curriculum-
related activities and instruction;
(b) compulsory levies for facilities are part of a
supply of exempt education services;
(c) student council fees, athletic fees, and other
manadatory fees related to course registration;
(d) charges for reports, library services, identity
cards, record keeping and other administrative
services ptovided by the educational institution
and directly related to the supply of education
courses;
(e) charges for course materials, the rental of
curriculum-related goods by the supplier of the
education (e.g., the rental of musical ins-
truments), field trips directly related to the
curriculum if not predominantly recreational;
and
(t) student accommodations (including hostels)
supplied by the supplier of the education.
8) Qualified facility ~harges include charges for buil-
dings, grounds, libraries, and computer, science and
other laboratories.
'JW 1 it ji ~1..t,.A ~;J{''''' ;JnllJ "'1'C Ii! ;J-1PtP' 1)1+' Ii!Uli '}.SJ". Federal Negarit Ga+eta- No. 1931 rd December, 2002-Page 2001
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9) The exemption for education services does not cover
the following education courses:(a) course in sports, games, video recording or
photography or other hobbies or recreationalpursuits, unless they are part of a degree-ordiploma-granting program;
(b) course, such as picture framing, cooking, and
personal investment, that are designed to im-prove knowledge for personal purposes; and
(c) music lessons that are not part of a school
curriculum.10) Religious workers receiving education are treated as
students for purposes of this Article of theRegulations.
11) In addition to services exempt under (4), exempt
education services rendered by a pre-primary,primary, or secondary school include -(a) basic instruction, including special education
courses;(b) fees or charges for a pre-school or after-school
program operated by the school;(c) charges for the use of school musical ins-
truments or sports equipment;(d) services rendered by students or their teachers
as part of the instructional program; and(e) charges for students to attend a school play,
dance, field trip, or other school-sanctionedactivity primary for the students.
12) Exempt education services rendered by a universityof technical college include courses, includingcorrespondence courses, that qualify for credittoward a degree or diploma, wh~ther or not thestudent is pursuing a degree or diploma program.
13) The education exemption for adult education,vocational training, technical education, andeducation or training of physically or mentallyhandicapped persons includes charges for:(a) adult education courses leading to a degree or
diploma or courses that are liekely to enhanceemployment-related skills of the students en-rolled in the courses;
(b) courses of study at a vocational school that
develop or enhance a student's occupationalskills;
(c) courses leading to, or to maintain or upgrade, a
professional or trade accreditation or desig-nation recognized by the appropriate govern-ment a£crediting agency; and
'
(d) a certificate or examination in a course orprogram for accrediation-or designation.
14) Courses enhance employment-related skills if thecourse objectives specify those skills that students willacquire, and there is a reasonable expectation that theskills taught will be used by the '<'studentsin theiremployment, businesses, professions, 01'trades, ratherthan for recreational, hobby, 'artistt'c,orcultutal pur-poses.
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Federal Negarit Gazeta - No. 193101December, 2002-Page 2002
15) The exemption for education services does notinclude;
(a) the rental of facilities by an educational ins-
titution to an outside group;(b) the sale of admission to school athletic events
open to the general public;(c) commissions and other fees received from the
placement of coin-operated machines on theinstitution's property; and
(d) the sale of non-course material, such as itemscontaining the schoollogo.
26. Supplies of Humanitarian Aid, and Imports of Goods forRehabilitation after Natural Disasters, Industrial Ac-cidents, and Catastrophes
1) The exemption for supplies of humanitarian aidunder Article 8, Sub-Article (2)(h) of theProclamation applies to goods imported or pur-chased locally by organizations registered ashumanitarian organizations, for such purposes.
2) The exemption under Article 8, Sub-Article (2)(h) ofthe Proclamation covers the import of goods orpurchase of goods locally in connection with anannouncement or declaration of a natural disaster,industrial accident, or catastrophe by the DisasterPrevention and Rehabilitation Commission.
27. Water
A supply of water is exempt from tax under Article 8,Sub-Article (2)(i) of the Proclamation, unless it isprocessed in a factory.
28. Imports Exempt by Law or Agreement
1) ArticJe 8, Sub-Article (2)0) of the Proclamationexempts imports of goods by the government,organizations, institutions or projects only to theextent that they are exempt from duties and otherimport taxes by law or by agreement.
2) An exemption by law covers an exemption forcertain imports granted by a Proclamation or, whenspecifically delegated by a Proclamation, granted bya Regulation or Directive.
3) An exemption by agreement covers tax exemptionsfor certain imports ofgoods only if the agreement isentered into by the government or the agreement isentered into with permission granted by the govern-ment.
4) The exemption by agreement includes an exemptionprovided under;(a) a technical assistance or humanitarian assis-
tance agreement entered into between theGovernment of any country';
(b) the Diplomatic Immunitiesand PrivilegesRegistrations, -
(c) an ~ntern~tipnarconvention,h~vingthe force of
,law in.~tb.iopia;(d) any -other, multilateral agreement to which
Ethiopia is a party; .
1X" liLl: J.1.t-A ~;Ji.:" ;Jtl.1IJ<ir1'CIii :MUfP' ftl"" liif~~ ,.9'". Federal Negarit G eta - No. 19 31'1December, 2oo2-Page 2003
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29. Transport1) The exemption for transport services under Article
8, Sub-Article (2)(1) of the Proclamation is a broad
exemption covering the charges imposed for the
transport of passengers or freight by any mode oftransport.
2) If a transaction involving the international transport
of goods or passengers qualifies for exemptionunder Article 8, Sub-Article (2) (I) of theProclamation, Article 8, Sub-Article (4) treats the
transaction as zero-rated.
30. Permits and Licenses1) The exemption for permits and license fees under
Article 8, Sub-Article (2)(m) of the Proclamation islimited to fees charged for permits and licensesissued by a government agency.
2) The exemption in (1) does not apply to licenses of
intangibles and Qther licenses or permits, such as
the right to use property, g ranted by private parties.
31. Imports Exempt under Schedule 2 I'B" of Customs
Tariffs Regulations.
The exemption granted under Article 8, Sub-Article(2)(n) of the Proclamation for imports of goods exempt
under Schedule 2 of the Customs Tariffs Regulations islimited to the exemptions granted under part (B) ofSchedule 2 of Customs Tariffs Regulations and underDirectives issued pursuant to those Regulations.Workshops for Disabled1) The exemption under Article 8, Sub-Article (2)(0)
of the Proclamation. applies to goods sold andservices rendered by workshops employingphysically or mentally disabled individuals.
2) To qualify for the exemption under Sub-Article
above more than 60 per cent of the workshop'semployees must be disabled. The 60 per cent
threshold is measured by the number of disabledand total employees in the previous 12 months,except that if the workshop has been in existencefor less than 12 months, then the threshold is
measured for the number of months the workshop
has been in existence.33. Books and other Printed Materials
1) The exemption under Article 8, Sub-Article (2)(p)
of the Proclamation applies to a printed book or anupdate of a book. The exemption applies to a bound
or unbound printed version of scripture of anyreligion.
2) The exemption for books generally does not apply
to an audio recording that is a spoken reading of aprinted book, except that the exemption under
Article 8, Sub-Article (2)(p) of the Proclamationapplies to import and supplies of talking books (in
cassettes or other forms of recording) specificallydesigned for the blind or severely handicapped.
1K" lit~ t..1.t,./A ~;J(''''' ;JILtIJ "''PC Iii ;J1..,P' ~I"',) Iitfj~ 'i.9". Federal Negarit Gazeta - No. 193111December, 2002-Page 2004
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CHAPTER 3Supplies Subject to Zero Tax Rate
34. Substantiation of Zero RatingWhere a registered person has applied the rate of zeropercent to a supply under these regulations, the regis-tered person shall obtain and retain such documentaryproof acceptable to the Authority substantiating theperson's entitlement to apply the zero rate to the supply.
35. Export of Goods or Services1) In this Article-
(a) "export country" means any country other thanEthiopia and includes any place which is notsituated in Ethiopia, but does not include anyspecific country or territory that the Minister ofFinance and Economic Development may byDirective designate as one that is not an exportcountry;
(b) "exported from Ethiopia" in relation to anymovable goods supplied by any registeredperson under a sale or credit agreement, means-
1) consigned or delivered by the registered person tothe recipient at an address in an export country asevidenced by documentary proof acceptable to theAuthority; or
2) delivered by the registered person to the owner orcharter of any foreign-going aircraft when suchaircraft is going to a destination in an exportcountry and such goods are for use or consumptionin such aircraft, as the case may be;
2) The following supplies are zero-rated exports withinArticle 7, Sub-Article (2)(a) of the Proclamation:
(a) a supply of goods where the supplier hasentered the goods for export, pursuant to theCustoms Proclamation, and the goods havebeen exported from Ethiopia by the supplier;
(b) a supply of goods where the Authority issatisfied that the goods have been exportedfrom Ethiopia by the supplier;
(c) a supply of goods where the goods are notsituated in Ethiopia at the time of supply and arenot to be entered into Ethiopia for homeconsumption pursuant to the CustomsProclamation by the supplier of the goods;
(d) a supply of services directly in respect of(i) movable property situated outside Ethiopia at
the time the services are rendered;(ii) goods temporarily imported into Ethiopia
under Chapter 5 of the CustomsProclamation; or
(iii) a supply of goods referred to in (a) or (b) ofthe definition of "exported from Ethiopia" ,
(e) a supply of goods in the course of repairing,renovating, modifying, or treating any goods towhich Sub-Article (2)(d)(ii) of this Articleapplies and the goods supplied
(i) are worled into, affixed to, attached to, orotherwise form part of those other goods; or
(ii) being consumable goods, become unusableor worthless as a direct result of being used inthat repair, renovation, modification, ortreatment process;
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Federal Negarit Gaz~ta - No. 193111December, 2002-Page 2005
(f) a supply of services directly in connection with
land, or any improvement thereto, situatedoutside Ethiopia;
(g) a supply of services to a non-resident person
who is not a registered person comprising thearranging for the person of a supply of goods
referred to in (a) and (b) of the definition of"exported from Ethiopia";
(h) a. supply of services physically rendered else
where than in Ethiopia;(i) a supply of services to a non-resident person
who is outside Ethiopia at the time the servicesare supplied, other than a supply of services;
(i) directly in connection with immovable
property situated in Ethiopia;.(ii) directly in connection with movable
property situated in Ethiopia at the time the
services are supplied unless the movableproperty is' exported from Ethiopia sub-sequent to the supply of services;
(iii) comprising the refraining from undertaking
any taxable activityin Ethiopia; or(iv) comprising the tolerating of another person
undertaking any taxable activityin Ethiopia;(j) a supply of services comprising-
(i) the filing, prosecution, granting, main-
tenance, transfer, assignment, licensing, or'enforcement of intellectual property rightsfor use outside Ethiopia;
(ii) incidental services necessary for the supply
of services refePredto in (i) above; or(Hi) ,the acceptance by any person of an
obligation to refrain from pursuing or exer-cising in whole or part, intellectual propertyrights for use outside Ethiopia;
3) To obtain zero rating for the export of goods and related
§ervices under this Article, the exporter, at the port ofexit, must identify the goods and present documentary
proof required by the Authority.4) Zero~(ating.for exports under Article 7, Sub-Article (2)
(a) of th~ Proclamation does not apply to any export of
goods which have been or will be re-imported to Ethiopiaby th~.supplier for export.
5) _'A ~upplyof~gi~le Personal property (including natural
..-
resources; b~tnQt ,in.cJuding spirits, beer or tobacco). mad~.byar~~s~r~person to a registeredrecipientwho.:willexporttf\e.goodsinzero-rated,if allof the following
conditions are met:(a) the recipient exports the property as soon after the
g<><;>dsare delivered to the recipient as is reasonable
i. .,hayin,i regar~ to the f~cts of each situation," .' i~chiding the. type .ofgoods.involved and, where.. applicable; the normal business practice of the
recipient;
1~' ~iti t..1.&-A ~;J("'" ;JUII) -Ir'rC Ii :1""1"'''''1 +111121"''''. .
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oit.,..,.c 119'':f')h'ilJ:J>sP'f1.- ,.' .
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m1."'~ "'''(1;1-'
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.
'
,..'. .' ..1'"
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Federal Negarit Gazeta - No. 193111December, 2002-Page 2006
(b) the recipient has not acquired the "goods fot
consumption, use or supply in Ethiopia beforeexportation;
(c) the goods must not be further processed, trans-
formed or altered in Ethiopia, except to theextent reasonably necessary or incidental to itstransportation, 8fte! delivery. and before itsexportation; and'
(d) the supplier must. maintain evidence satisfac-
tory to the Authority of exportation of the goodsby the recipient.
6) For purposes of Sub-Article (5),-(a) the recipient must intend to export the goods
and must in fact export the goods;(b) a supply to a recipientwho intends to sell to a
registered person who will export the goods isnot treated as a supply to' a recipient who willexport the goods;
(c) processing, transformation, or alteration in-
. eludes preparation, handling or other activity.
that causes a physical or chemical change in theproperty, other. than natural growth, butgenerally does not inelude services such asinventory-taking, refrigeration, warehousing,export packing or repacking, export labeling,export crating, loading or ul\loading; and
(d) evidence of exportation can be satisfied with
documents satisfactory to the Authority, such asan eJport certificate from the ~ipient of thegoods in a form acceptable to the Authority.
36. 'International Transport of Goods or Passengers
1) In this Artiele-(a) "ancillary transport services" means
stevedoring services, lashing and securingservices, cargo inspection services,preparation of customs documentation, con-tainer handling services, and storage of trans-ported goods or goods to be transported;
(b) "foreign-going aircraft" means any aircraft
engaged in the transportation for reward ofpassengers or goods wholly or mainly onflights between airports in.Ethiopia and air-ports in exeort countries or betWeenairports inexport countries;
.
(c) "intemationaltransport services" means: .
, I. the services, other than ancillary transport.,services, of transporting p~gersor
. goods by land, water, or air.(i) from. a place Otitside Ethiopia to
another place outside Ethiopia wherethe.transport or part of the transport
is across the tenitory of Ethiopia;(ii) , from a plaeeoutside Ethiopia to a
" plaCein Ethiopia;or(iii) from a place in Ethiopia to a place
outside Ehiopi.;
~ '.
""~.
'~'. .
1A' In:~ ~t-I:\ ~;MfI",;Jtl.1IJMe Xii ;J-1"1'"~I"" Iiin~ ,.,... Federal Negarit Gazeta- No.1931ItDecember, 2002~Page 2007
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r!J%' /\"-Tf'A-I-flch.t-'£ 111h ia/\"t+C-fl mc~/\"-Tf'kl-flch.t-'£ 111h f"t+C-fl mc~ Oh".:( h'+Y\% 10-ia h1+Jt (I) (th) oolPl.T tl.C' f"7iah4t1 Ah+4t~"t f"t1.l...,OT "-11'1 /\"-T"A-1 -flch.t-~ 111hh1A..,ll-T 'h,-\w-A m1.h1C f"t111 mc~ Oh".:q:h1+Jt ~ 10-ia h'+Jt (I) (00) oolPl.T h;t-hft- ~, ~aJo:l
2) the service,sof transporting passengers from a place
in Ethiol>ia is to another place in Ethiopia to theextent that the transport is by aircraft and cons-titutes "international carriage" as defined in Ar-ticle 8 of the Convention on International CivilAviation.
3) the services, including any ancillary transportservices, of transporting goods from a place inEthiopia to another place in Ethiopia to the extentthat those services are supplied by the samesupplier as part of the supply of services to which(a) of this definition applies; or
4) the services of insuring or the arranging of theinsurance or the arranging of the transport ofpassengers of goods to which (a) to (c) of thisdefinition applies;
2. The following supplies are zero-rated supplies withinArticle 7, sub-Article (2)(b) of the Proclamation(a) a supply of the goods under a rental agreement, or
agreement for chartering, where the goods are usedexclusively in an export country;
(b) a supply of goods delivered to the owner orcharterer of a foreign-going aircraft when theaircraft is flying to a destination in an exportcountry and the goods are to be used internationaltransport services;
(c) a supply of international tran~port services;(d) a supply of services directly in respect ofthe repair,
maintenance, cleaning or reconditioning of aforeign-going aircraft;
(e) a supply services directly to a non-resident person
not being a registered person, otherwise thanthrough an agent or other person;(i) comprising the hapdling, pilotage, salvage, or
towage of any foreign-going aircraft whilesitutated in Ethiopia; or
(ii) provided in connection with the operation ormanagement of any foreign-going aircraft;
(t) a supply of services to a non-resident person
who is not a registered person comprising thearranging for the person of-(i) a supply of services to which sub-Article
(2)(d) or (e) of this Article applies; or(ii) the transport of goods, including an-
cillary transport services, withinEthiopia;
(g) a supply of services comprising the repair,
maintenance, cleaning, or reconditioning of arailway train operated by a non-resident per-son ~ho is not a registered person.
37. Supply of Gold to the National Bank of Ethiopia
A supply of gold to the National Bank of Ethiopia iszero-rated under Article 7, Sub-Article (2)(c) of theProclamation, and the import of gold to be transferred tothe Nationl Bank exempt under Article 8, Sub-Article(2)(d) of the Proclamation.
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38. Transfer of a Going Concern
1) The transfer of all or portion of a taxable activity as
a going concern is a supply in the course or
furtherance of the taxable activity under _t\rticle4,
Sub-Article (9) of the Proclamation. If the tranfer
meets the requirements of Article 4, Sub-Article
(10) and Article 7, Sub-Article (2)(d) of the
Proclamation, the transfer can be zero-rated. In
appropriate cases described in Article 4, Sub-Ar-
ticle (11), a portion or the entire transfer that is zero-
rated to the supplier may be treated as a taxable
transaction to the person acquiring the going
concern.
2) To obtain zero-rating, the parties must comply with
the following requirements:(a) The transfer must be of a going concern
between registered persons;
(b) A notice of the transfer must be submitted in
writing and signed by the transferor and
transferee;
(c) The notice must be furnished to the Authority
within 21 days after the transfer takes place;
and
(d) The notice must include the essential details of
the supply.
3) A going concern is an income-producing activity
capable of separate operation that is in fact
operational and capable of being carried on without
interruption after the transfer, but not a dormant or
prospective business.
4) A transfer can be of a going concern even if the
transferred business in not profitable, or is being
transferred to a liquidator, receiver, trustee in
bankruptcy, or other persons appointed upon the
insolvency of registered person.
5) the transfer is zero-rated only if it taks place on or
after the effective date ofthe VAT.
6) A transfer of a going concern comes within the zero
rating of Article 7, Sub-Article (2) (d) of the
Proclamation if the transfer is to a person with no
previous interest in the business, or is a a transfer of
an existing business involving only a change of
legal entity or form of doing business, such as from
a partnership to an incorporated company.
7) It is not necessary for the transferee to operate the
particular income-producing activity acquired, so
long as it is capable of separate operation.
8) The supply of farmland alone is not a supply of a
going concern if it can be separately operated.
1K' liti A.1.~A ";J/.:t, ;JUII) cfl~CIi ;J-1"'1P'~I"',) Iin~ ~.9". Federal Negarit Gazeta-No. 1931I1December,2002-Page2009
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9) Unless the transferor and transferee both are registered
persons and both sign and file in a timely manner to treat
the transfer as a supply of a going concern as required
under Article 7, Sub-Article (2)(d) of the Proclamtion,
the transfer is not zero-rated, even if in fact it is a transfer
of a going concern.
10) The 21-day period within which the notice must be filed
is determined under the time of supply rules in Article
11 of the Proclamation.
11) If the transferee previously was not a registered person,
the supply can qualify for zero rating only if the
transferee is registered by the date the transfer takes
place.
12) If the parties file the required notice and the transfer
does not qualify as .a zero-rated supply of a going
concern under Article 7, Sub-Article (2)(d) of the
Proclamtion, the consideration charged for the supply is
treated as being exclusive of VAT, the transfer is
subject to tax, and the transferee can claim a tax credit to
the extent allowable under the Proclamation.
13) The notice to the Authority required under this Article
must include a complete list of the assets transferred, the
market value of each asset transferred, the nature of the
business conducted by the transferror and the business
to be conducted by the transferee with the acquired
assets, and the length of time the transferor's business
has been operated with the assets transferred. The
Authority may require additional information from the
transferor or transferee, or both.
14) If the transferor cancels its registration as part of the
transfer of a going concern, then goods not transferred
as part of the going concern generally constitute a
supply of the goods by the trasnsferor at their market
values, except that this rule does not apply to goods for
which the transferor has not been allowed a tax credit
under Article 21 of the Proclamation.
15) The transferor and transferee, upon written application
signed by both, may request a transfer of taxpayer,
identification number and certificate of registration, and
the Authority has the sole discretion to grant or deny the
request.
16) If the appl\fation under (7) is approved,-
(a) the transferor must transfer VAT records to the
transferee, and the transferee must retain those
records for the time required for the retention of
records under Article 37 of the Proclamtion; and
(b) both parties are legally obliged to pay any VAT
liability incurred while the transferor owned the
business.
'lX- gitI "-1..t-A ~;Jt"" ;JILIIJ -Ir'1'CIii ;r1..,p' tll +'} Iiif7~ ,-,..- Federal Negarit Gazeta - No.19 3111December,2002- Page2010
t!)ji- tlPtIPtl f"7lD-tlJ"" P'AtlJ1 39. Directives
f1tl9':J. "7.t"'''''C t\tllJ 1.'Hl1\L'O?" f"7.l~ tlDtlPtl The Minister of Revenue may issue directives for the9':J.1 t\"7lD-tlJ""f,:J.I\Ar: proper implementation of these Regulations.
ij- 1.1~ f"7.flljO"" +1 40. Effective Date
f,tJ 1.111 1\CP:(. hfllj ri..,. +1 "f..?"r: ffllj f,tflj A:IThese Regulations shall come into force as of the datethe Proclamation comes into force.
1\Jl'" 1\OCt;J-"'",P' f11+1 ljifj~ '-?" Done at Addis Ababa this 31st day of December, 2002.
tlPt\... tLlj'e
f1\.""f-*1 ~1..t-I\'e Jl'l"ht-l1.1'e tT11l\.h
m c}>I\f, "7.t"'''''C
MELES ZENAWIPRIME.MINISTER OF THE FEDERAL DEMOCRATIC
REPUBLIC OF ETHIOPIA
{lcnc; M9" """'lI7.11:C~"" ;r"'ODBERHANENA SELAM PRINTING ENfERPRISE