Ethiopia car import tax is easy but information is not available. Hence importing vehicle into Ethiopia is tough, daunting and downright frustrating. Especially dealing with ethiopia car import rules. We are here to help.

Who can import vehicles into Ethiopia?

First let’s answer the first important question. Who can import cars into Ethiopia? The Ethiopian law allows only the following entities to import vehicles into Ethiopia. That is of course, as long as they satisfy the rest of the requirements.

Licensed import/export businesses entities (dealers) that have trade license in the automotive industry, Business entities that have investment trade license which endorses vehicles as encouragement, Diasporas who have been living outside the country for more than five years and moving back home for no return, Expats who are moving into the country for the first time.

Note: Diasporas and expats are allowed to import only one vehicle.

People and businesses who don’t fall into those four groups should consider using a licensed dealer to import their vehicles. Otherwise your property could be confiscated and your attempt could be punishable.

Now we have have covered the four entities who are allowed to import motor vehicle by low. Let’s move on to the type of taxes imposed on you and amount you are required to pay.

Dealing with ethiopia car import tax – Taxes imposed on importing Vehicle

According to tax proclamation #444 every vehicle imported to Ethiopia is liable to five different taxes unless exempted by law. These five ethiopia car import tax categories are.

Custom Duty,

In simple terms custom duty is tax tax imposed on goods entering and leaving the country. This is true to cars and all kinds of vehicles.

ERCA imposes duty only on imported goods and they have five groups or levels of rate. These levels of rate are 0%, 5%, 10%, 20%, 30% and 35% of CFI which is cost, insurance and Freight of the vehicle.

Excise Tax,

Value Added Tax (VAT),

Sur Tax,

Withholding Tax.

Even though everyone is liable for these duties and taxes, everyone pays different amount. The amount you pay in each of the tax type depends on the type of vehicle you are importing. The next section covers the tax estimation and calculation processes at ERCA (Ethiopian Revenue and Customs Authority).

Ethiopian Car Tax Estimation and Calculations

Tax estimation depends on a number of factors. We will try to list each factor and clarify this process so everything is easy and simple for you.

Engine power or Cylinder Capacity, Year of manufacturing, Amount car is bought.

Source: ERCA

Also available in slides:

[slideshare id=61327318&doc=ethiopiacarimporttax-160425151139]