Ethopia: Finance Ministry grants VAT exemption on initial 200 kWh of electricity, 15 cubic meters of water consumption

Addis Abeba – The Ministry of Finance (MoF) has issued a new directive establishing the VAT-exempt thresholds for domestic electricity and water consumption.

Effective 05 September, 2024, the directive exempts the first 200 kilowatt-hours (kWh) of monthly electricity consumption and the initial 15 cubic meters of monthly water consumption (excluding bottled water) from VAT.

The directive mandates that Ethiopia Electric Power (EEP), the sole electricity supplier in Ethiopia,…