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Ethiopia Tax Information

15% VAT

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

SaaS Services to Invoice

  • Monthly subscription
  • Annual subscription
  • Usage-based charges
  • Overage fees
  • Add-on features
  • Setup fees
  • Enterprise licensing

Invoice Requirements in Ethiopia

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

Payment Terms

Prepaid monthly or annually. Enterprise contracts may be Net 30.

CashNet 15Net 30Advance

Payment Methods in Ethiopia

Bank TransferCommercial Bank of EthiopiaTelebirrDashen BankCash

SaaS Invoice Tips

  • Include subscription period
  • Show plan details
  • Detail overages separately
  • Reference account ID
  • Include next billing date

Frequently Asked Questions

What tax rate applies to saas 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 saass in Ethiopia?

Common payment methods in Ethiopia include: Bank Transfer, Commercial Bank of Ethiopia, Telebirr, Dashen Bank, Cash. Prepaid monthly or annually. Enterprise contracts may be Net 30.

What should saas invoices include in Ethiopia?

Your invoice should include: TIN number, VAT registration, Client TIN, Invoice number. For saas services specifically, also include: Monthly subscription, Annual subscription, Usage-based charges.

How should SaaS companies invoice?

Include plan name, billing period, base price, overages, and total. Reference account ID.

How to handle usage-based billing?

Track usage throughout period. Invoice base plus overages with usage details.

What is Ethiopia's VAT rate?

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