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Djibouti raises VAT rate to 10%

  • VAT
  • 14 February 2015 | Richard Asquith

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.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.