← Taxation Fundamentals for Ethiopian Businesses: Business Tax Management

VAT Administration and Reconciliation

Module 03 / 6 · 65 min

Apply the 2024 VAT law and its directives, issue and register invoices correctly, prepare the monthly return, reconcile VAT to the ledger and manage a VAT audit.

In this module you will learn to

Explain the registration, invoicing and input credit rules of VAT Proclamation No. 1341/2024 and Directive No. 1104/2025
Prepare a monthly VAT return from the sales and purchase registers
Reconcile VAT returns to the general ledger and correct differences
Prepare for and manage a VAT audit

Built on

Erudite Africa training curriculum: Taxation Fundamentals for Ethiopian Businesses, Level 2 Intermediate, Business Tax Management (October 2026)
Federal Income Tax Proclamation No. 979/2016 as amended by Income Tax (Amendment) Proclamation No. 1395/2025, and Council of Ministers Income Tax Regulation No. 410/2017 as amended; article references for No. 1395/2025 per KPMG, EY, PwC and Grant Thornton summaries
Value Added Tax Proclamation No. 1341/2024, VAT Regulation No. 570/2025, VAT Registration Directive No. 1104/2025, Directive No. 1021/2024 and Electronic Invoicing System Administration Directive No. 1142/2026
Federal Tax Administration Proclamation No. 983/2016 as amended by Tax Administration (Amendment) Proclamation No. 1434/2026, and Penalty Waiver Directive No. 189/2025
Financial Reporting Proclamation No. 847/2014, Private Organization Employees' Pension Proclamation No. 1268/2022 and Investment Incentive Regulation No. 586/2026

Examples and companies are fictional. Tax rates and rules are shown as they stood when the course was written; always check the current proclamations, directives and guidance from the Ministry of Revenues before filing, and take professional advice for your own case.