Djibouti raises VAT rate to 10%

Djibouti, on the western coast of Africa, has increased its standard VAT rate from 7% to 10% from the start of 2015.  It has also reclassified hotel accommodation and related service from the standard rate to nil rated to assist the local tourism industry.

This follows a number of other countries in Africa which have introduced the same measure.  Djibouti has introduced the VAT changes as part of a long term integration into the Common Market for Eastern and Southern African (COMESA) association.

The changes, contained within the 2015 Finance Act, came into place on 1 January 2015.