Article 64 — Compliance by Foreign Service Provider

1/ Subject to Sub-Article (2) of this Article, the Tax Authority may require a person carrying on a taxable activity outside Ethiopia who is liable to be registered under Article 12 of this Proclamation but who does not have a fixed place of business in Ethiopia to lodge security with the Tax Authority in accordance with the Tax Administration Proclamation. 2/ Sub-Article (1) of this Article shall apply only if the Tax Authority has reasonable grounds to believe that the person will not comply with their obligations under this Proclamation. 3/ If a person who has lodged security under Sub-Article (1) of this Article fails to comply with their obligations under this Proclamation, the Tax Authority may require the person to appoint a VAT representative in Ethiopia. 4/ A VAT representative appointed under Sub-Article (3) of this Article shall be responsible for doing all things required under this Proclamation of the person they represent, including applying for registration, filing of VAT returns, and paying VAT. 5/ The registration of a VAT representative shall be made in the name of the person they represent. 6/ A person may be a VAT representative for more than One person but shall have a separate registration for each person they represent. 7/ A VAT representative of a person under this Article shall be: a) a representative of the person for the purposes of the Tax Administration Proclamation; and b) personally liable for the VAT liability of the person they represent. 8/ The Tax Authority may specify the mode, manner, and requirements for appointment of a VAT representative and the responsibilities of the representative.