- Tax-free goods and services mean supplies that are not subject to any value-added tax/regular or zero-rated.
- They are not considered in the total annual sales VAT registration
- A taxpayer is not registered for Value Added Tax if he is engaged in fully duty-free transactions.
- If a taxpayer carries out mixed supply i.e., engages in both taxable and tax-exempt supplies, he cannot claim the input tax credit for his tax-exempt supplies.
Source: M.O.R East Addis Ababa Branch