Source-cited draft: vat / gst for Somalia (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.
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Is there a VAT/GST?
No full VAT yet — a 5% Sales Tax operates while a formal VAT system is being developedFederal Ministry of Finance — Sales Tax (https://www.vatcalc.com/somalia/somalia-split-payments-sales-tax/)
Headline sales tax rate
5%Federal Ministry of Finance — Sales Tax — https://tradingeconomics.com/somalia/sales-tax-rate
Import sales tax
Sales tax is also levied on imports, collected by the Customs Department alongside import duty and exciseFederal Ministry of Finance — Customs Department (https://mof.gov.so/departments/revenue-department)
Split-payment mechanism
Since 18 August 2024, sales tax is remitted directly to the central treasury at the time of saleFederal Ministry of Finance — Sales Tax (split payments) (https://www.vatcalc.com/somalia/somalia-split-payments-sales-tax/)
Filing frequency
Monthly — taxpayers report sales tax collected each month to the Inland Revenue Department on the prescribed formInland Revenue Department — monthly sales tax return (https://www.vatcalc.com/somalia/somalia-split-payments-sales-tax/)
Registration threshold
No clearly published mandatory registration turnover threshold; businesses collecting sales tax must register with the IRD (approx — confirm)Inland Revenue Department (https://www.vatcalc.com/somalia/somalia-split-payments-sales-tax/)
Reverse charge
No general reverse-charge mechanism — Somalia has a sales tax, not an input/output VAT, so cross-border service reverse charge does not apply (approx — confirm)Federal Ministry of Finance — Sales Tax (https://www.vatcalc.com/somalia/somalia-split-payments-sales-tax/)
Input tax credit
As a single-stage sales tax (not VAT), there is generally no input-tax credit mechanism (approx — confirm)Federal Ministry of Finance — Sales Tax (https://www.vatcalc.com/somalia/somalia-split-payments-sales-tax/)
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
Somalia does not yet operate a full value-added tax. Instead a 5% Sales Tax applies to most goods and services, collected at the point of sale, with a formal VAT system under development with international assistance. Since 18 August 2024 the Federal Ministry of Finance has applied a split-payment mechanism so the tax is remitted immediately at the time of sale.
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Other Somalia computations in the OpenAccountants Tax Library.