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The Egyptian Tax Authority (ETA) issued a plan on 26 March 2020 to introduce mandatory e-invoicing in Egypt, as defined in decree Nº.188. It aims to encourage digital transformation, improve fiscal control, and reduce fraud and tax evasion.

The first article of the Resolution stipulates that Egyptian VAT-registered businesses are required to issue electronic tax invoices that include the e-Signature, e-Seal & Standard Code of its good or service subject to the invoice approved by the Egyptian Tax Authority.

Egypt e-invoicing

It has already been approved for businesses to interact electronically. As is indicated by article 13 of the VAT’s executive regulations, the registered persons are required to issue a paper-based or electronic tax invoice upon the sale of a taxable commodity or provision of a taxable service, which should include the required data such as serial number, its date of
issuance, and a description of the commodity/service.

The fundamental idea behind this new mandate is to gain more control by boosting VAT proceeds and increasing the number of registered taxpayers in Egypt.

This was emphasized in a statement in the preparation of the draft law on e-invoicing:

“The electronic inspection of invoices is one important factor in boosting tax proceeds and increasing registered taxpayers. The inspections system helps detect taxpayers who submit non-compliant zero-rate tax declarations despite their commercial transactions.

It can also detect non-VAT-registered taxpayers whose annual purchases exceeded the VAT registration threshold.

Moreover, true sales figures of taxpayers’ invoices can be verified through
matching them as per their declarations with purchases of others, and by matching them with customs information.

The system can also identify defaulters who don’t comply with the legal date of submitting tax declarations, sales and purchases history of fake companies, and those who submit credited and debited tax files.”

Objective

• Promote digital transformation in government and businesses.
• Eliminate the underground economy.
• Fight tax evasion.
• Improve tax control.
• Offer equal opportunities to Egyptian companies.

Who

• All VAT-registered businesses operating in Egypt that make sales of taxable commodities or
• provide taxable services.

How

• Issuers must be registered with the Egyptian invoicing system.
• E-Invoice to be e-Signed / Stamped. (Using HSM Device)
• E-Invoice format is JSON or XML.
• E-Invoice should have a unique UUID (Unique ID) code.
• The products or service must be coded according to the GPC classification of the GS1
• standard.

EFILE SOLUTIONS ENSURE YOU DO COMPLY WITH GOVERNMENT REGULATORY, AS WELL AS OUR DATA PROTECTION IN EVERY PROCESS, ENABLING YOU TO FOCUS ON YOUR CORE BUSINESS.