Eritrea VAT / GST

No VAT — sales tax and services tax

Eritrea does not operate a value-added tax (VAT) or GST. Instead it levies a cumulative sales tax on goods and a services tax, governed by the Sales and Excise Tax legislation first introduced in 1994. Rates and registration details should be confirmed with the Inland Revenue Department.

• VAT / GST status — Eritrea has no VAT or GST; it applies sales tax and services tax instead (Sales and Excise Tax Proclamation (Legal Notice 64/1994))
• Sales tax on goods — 4% percent ((approx — sources vary 4%–5%; confirm)) (Sales and Excise Tax Proclamation (Legal Notice 64/1994))
• Services tax (sales tax on services) — 10% percent ((approx — confirm)) (Sales and Excise Tax Proclamation (Legal Notice 64/1994))
• Excise tax — Levied separately on specified goods (e.g. alcohol, tobacco, fuel) at varying rates ((approx — confirm schedule)) (Sales and Excise Tax Proclamation (Legal Notice 64/1994))
• Input tax credit mechanism — None — sales tax is cumulative (cascading), not a credit-offset VAT (Sales and Excise Tax Proclamation (Legal Notice 64/1994))
• Registration threshold — No published VAT-style turnover threshold; registration governed by sales/excise tax rules ((approx — confirm with Inland Revenue Department)) (Sales and Excise Tax Proclamation (Legal Notice 64/1994))
• Filing / remittance frequency — Periodic (commonly monthly) returns and remittance to the Inland Revenue Department ((approx — confirm)) (Sales and Excise Tax Proclamation (Legal Notice 64/1994))
• Reverse charge on imported services — No VAT-style reverse charge mechanism exists (no VAT system) (Sales and Excise Tax Proclamation (Legal Notice 64/1994))