The Addis Ababa City Administration Revenue Bureau has announced the introduction of a new system for over 62,000 VAT taxpayers, designed to enhance VAT service delivery and provide more efficient services. According to the bureau, there are over 62,000 VAT taxpayers in Addis Ababa, and many of them tend to file their returns on the last days of the month. This creates significant pressure on service delivery. Additionally, the existing system has led to difficulties for taxpayers, including penalties due to congestion and internet outages during peak filing times at the end of the month.
The bureau also pointed out that the previous system hindered the proper and thorough verification of information provided by VAT registrants, which led to inaccurate decision-making, malpractices, and even fraud.
To address these challenges, the new VAT filing schedule will take effect starting February. Under the new system, VAT registrants—whether individuals or organizations—will file their returns according to the following schedule based on the first letter of their names:
- Names starting with A-G: First week of the month
- Names starting with H-N: Second week of the month
- Names starting with O-T: Third week of the month
- Names starting with U-Z: Fourth and final week of the month
In the 2025 fiscal year alone, the Addis Ababa City Administration Revenue Bureau registered 8,540 businesses that were previously not required to register for VAT.
