Expense management module › Global expense management › Ethiopia
Last updated : 11.05.2026
Expense rules in Ethiopia.
Ethiopia applies VAT at 15%. 2nd most populous African country, capital Addis Ababa (AU HQ). E-tax mandatory.
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1Expense rules & reclaimable VAT
VAT 15% single rate. ToT (Turnover Tax) 2-10% for non-VAT companies.
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Meals | 15% | Deductible | Tax receipt + TIN |
| Lodging | 15% | Deductible | TIN |
| Alcohol | 15% | Limited | Excluded |
| Fuel | 15% | Deductible | Receipt |
| Transport | 15% | Deductible | Taxi/Ride/airfare |
| Gifts | 15% | Non-deductible | Cap |
Receipt
Tax receipt
TIN mandatory
SourcesEthiopia Ministry of Revenue
2Mileage allowance
Actual.
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | – | Fuel | Receipt |
| Company car | – | Card | – |
| Taxi/Ride | – | 100% receipt | Receipt |
Tracking
Logbook
Date, distance
SourcesEthiopia Ministry of Revenue
3Per diem and travel allowances
Company policy.
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Addis Ababa | ETB 500 | ETB 1 800 | ETB 3 000 |
| Dire Dawa | ETB 400 | ETB 1 400 | ETB 2 400 |
| Mekelle | ETB 350 | ETB 1 200 | ETB 2 000 |
| Other | ETB 300 | ETB 1 000 | ETB 1 800 |
Conversion
~1 EUR = 130 ETB
Variable
SourcesEthiopia Ministry of Revenue
4Foreign VAT recovery
Residents only.
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| Resident | Credit | Monthly | Return |
| Non-resident | None | – | Final cost |
| IP/SEZ | Incentives | Per approval | Regime |
Limitations
5 years
Keep
SourcesEthiopia Ministry of Revenue
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