ELECTRONIC INVOICING SYSTEM ADMINISTRATION DIRECTIVE NO. 1142/2026

The Ministry of Revenues has enacted the Electronic Invoicing System Administration Directive No. 1142/2026, effecting a fundamental transformation of Ethiopia's tax reporting landscape. This Directive shifts the paradigm from traditional paper-based invoicing to a mandatory, real-time digital reporting framework that will fundamentally alter how businesses record and report transactions.

The Directive establishes a comprehensive regime governing the use, licensing, and oversight of electronic sales registration systems across Ethiopia. This legal update provides an exhaustive overview of the Directive's major features and the critical compliance obligations imposed on all stakeholders.

The use of an Electronic Sales Register System that integrates with the Ministry's central Electronic Invoice Registration System is now mandatory for all taxpayers that maintain books of accounts under Ethiopian tax law. The Directive also permits taxpayers to voluntarily adopt the system, even if not statutorily required, providing flexibility for businesses seeking to modernize their operations. This mandatory framework represents a significant departure from previous practice, where electronic invoicing was optional or limited to specific sectors. Please read the full details in the attachment.