Mogadishu, (SONNA): In a recent press release, the Ministry of Finance announced significant changes to the sales tax collection process. Starting from August 18, 2024, businesses are required to add a 5% sales tax to every invoice for goods and services purchased by their customers.
The sales tax, an indirect tax, will be paid by consumers who buy goods and services. Previously, businesses were responsible for paying this tax to the government alongside other taxes owed.
This move represents a modernization effort by the ministry, aiming to streamline tax collection and enhance revenue generation. Business owners should be aware of this new requirement and adjust their invoicing processes accordingly.
