FAQ

Value Added Tax (VAT) is a consumption tax imposed on the value added to goods and services at each stage of production or distribution. It is a type of indirect tax that is ultimately borne by the end consumer.

As of April 1, 2024, the standard VAT rate in Somalia is 5%. This rate is subjected to all Products and Services sold

All Businesses Operating in Somalia must be registered in VAT. Once registered, businesses must charge and Collect VAT from customers on behalf of the SomaliTax Authorities

Businesses that are registered for VAT in Somalia are required to charge VAT to products and services they sold the customers, Businesses Collect and remit Automatically to the Somali Tax Authorities.

All Goods and Services are Subjected to VAT and there is no Exemption in the Act Passed by The Somali Parliament

There will be Automatic Server that is sending The VAT the Tax Authority Account, no need for filing and later remittance

Failure to comply with VAT regulations in Somalia, such as failure to register for VAT when required,  or to send money to other non-registered accounts may result in penalties and fines imposed by the tax authorities.

Register or update your business license at your local authority and opt into tax registration all in one go. Receive your new or updated 'shati', complete with your business details and tax ID, ensuring you meet all local business and tax regulations.

Take your updated shati to your merchant service providers to ensure all business information is up to date. This integration allows for seamless transactions and improves customer experience at the point of sale.

With your new tax ID in place, merchant service providers will automatically deduct the appropriate taxes from transactions, simplifying your financial operations and ensuring tax compliance without extra effort.