List of service and product that are exempted from Turn over tax
Ethiopia tax system and how to assessed tax in Ethiopia .Types of tax in Ethiopia are direct and in direct tax. List of service and product that are exempted from Turn over tax
According to the Ethiopian tax law, taxes are divided into two types: Direct and Indirect Tax
In the direct tax the responsibility of paying the total tax that is included in this type of tax rests directly on the taxpayer. Among the direct tax types, business profit (Profit Tax), tax on income from employment (Income Tax) are mentioned a few.
The second type of tax is indirect tax, and all the taxes classified under this type of tax are not paid directly from the taxpayer, but the tax that collects from the party that performed the service or sale. Excise tax is mentioned.
Turn over tax (TOT) is called sales tax in Amharic, and the responsibility for collecting this type of tax lies with taxpayers who are not registered for value added tax and conduct transactions that are not exempt from sales tax transactions.
The list of transactions that are exempt from sales tax or TOT is as follows:-
1. Sale of residential property that has been used for at least two years
2. Rent for residential use
3. Financial services
4. Services related to faith or worship provided by religious institutions
5. Medical services
6. Transportation services
7. Items for humanitarian aid Sale of books Bread, bread, teff, flour and so on