Add or remove 15% VAT, and see the withholding tax to keep back from a supplier payment: 3% of the amount before VAT on goods over ETB 20,000 or services over ETB 10,000, or 30% when the supplier has no TIN.
The rules used
VAT at the standard 15% rate
Withholding of 3% (2% before 7 August 2025) on payments for goods over ETB 20,000 and services over ETB 10,000
Withholding is worked out on the amount before VAT
30% withholding when the supplier cannot give a TIN
Please note
Withholding applies when the buyer is a withholding agent. Some supplies are zero-rated or exempt from VAT. This tool is a guide, not tax advice; confirm special cases with the Ministry of Revenue.
How do I add 15% VAT to a price?
Multiply by 1.15. For example, ETB 10,000 + 15% VAT = ETB 11,500.
How do I find the VAT inside a price that includes VAT?
Divide by 1.15 to get the amount before VAT, then subtract. ETB 11,500 ÷ 1.15 = ETB 10,000, so the VAT is ETB 1,500.
When do I withhold 3%?
When a withholding agent pays more than ETB 20,000 for goods or more than ETB 10,000 for services, before VAT. If the supplier has no TIN, withhold 30%.