Ethiopia has introduced the Electronic Invoicing System Administration Directive No. 1142/2026, establishing a comprehensive framework for the administration and use of electronic invoices. The Directive forms part of broader efforts to modernise tax administration, improve efficiency, and support the country's digital transformation agenda.
Overview of e-invoicing in Ethiopia
Under the new framework, businesses required to issue e-invoices are expected to use approved electronic invoicing systems, either through approved service providers, approved software solutions, cloud-based systems, or self-developed systems that meet the requirements established by the tax authority.
Scope of the Directive
The Directive applies to taxpayers required to issue electronic invoices, electronic invoicing software providers, electronic invoicing service providers, and taxpayers using self-developed invoicing systems. It regulates both the use of electronic invoices and the approval, operation, and supervision of the systems used to issue and manage them.
Approval and operational requirements
The Directive establishes the conditions under which taxpayers may obtain authorisation to use an electronic invoicing system. It also sets requirements for:
- Cloud-based electronic invoicing solutions.
- Taxpayers developing and operating their own invoicing systems.
- Electronic invoicing software providers seeking approval.
- Electronic invoicing service providers delivering invoicing services to taxpayers.
The tax authority is responsible for reviewing, authorising, and supervising approved systems and service providers.
Manual invoicing during system interruptions
The framework recognises that system interruptions may occur and allows the temporary use of manual invoices under specified conditions when the electronic invoicing system is not available.
Taxpayers that have been permitted to use manual invoices must take corrective actions once the electronic invoicing system becomes available again. The framework also sets out the responsibilities of taxpayers during and after such contingency situations.
Invoice administration and adjustments
The framework addresses the full invoice lifecycle, including:
- Acceptance and registration of invoices.
- Cancellation procedures.
- Price and transaction adjustments through tax debit notes and tax credit notes.
- Administrative treatment of invoices by the tax authority.
Government transactions
Government budget institutions are required to use receipts generated through the electronic invoice registration system when issuing withholding tax receipts relating to domestic purchases of goods and services.
