Create Freelancer Invoice in ETB →

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Ethiopia Tax Information

15% VAT

VAT is 15%. TIN required. Registration mandatory above ETB 1 million turnover.

Freelancer Services to Invoice

  • Hourly consulting
  • Project-based work
  • Retainer agreements
  • Milestone billing
  • Rush/priority fees

Invoice Requirements in Ethiopia

TIN number
VAT registration
Client TIN
Invoice number
VAT (15%)
Total in ETB

Payment Terms

Net 14 or Net 30 is standard. Consider 25-50% deposits for larger projects.

CashNet 15Net 30Advance

Payment Methods in Ethiopia

Bank TransferCommercial Bank of EthiopiaTelebirrDashen BankCash

Freelancer Invoice Tips

  • Always use a unique invoice number
  • Clearly state payment terms upfront
  • Include detailed breakdown of work
  • Add late payment fees
  • Keep copies for tax purposes

Frequently Asked Questions

What tax rate applies to freelancer invoices in Ethiopia?

Ethiopia has 15% VAT. VAT is 15%. TIN required. Registration mandatory above ETB 1 million turnover.

What payment methods are common for freelancers in Ethiopia?

Common payment methods in Ethiopia include: Bank Transfer, Commercial Bank of Ethiopia, Telebirr, Dashen Bank, Cash. Net 14 or Net 30 is standard. Consider 25-50% deposits for larger projects.

What should freelancer invoices include in Ethiopia?

Your invoice should include: TIN number, VAT registration, Client TIN, Invoice number. For freelancer services specifically, also include: Hourly consulting, Project-based work, Retainer agreements.

How do I invoice for hourly freelance work?

List each task with hours worked and hourly rate. Include dates and detailed descriptions.

Should I charge a deposit as a freelancer?

Yes, especially for larger projects. A 25-50% deposit protects you from non-payment.

What is Ethiopia's VAT rate?

Ethiopia applies 15% VAT on most goods and services. Basic food items and exports are zero-rated.