E-Invoicing In Egypt
Decree No. 188 of the year 2020
ETA, Egyptian Tax Authority
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The introduction of mandatory e-Invoicing is a part of Egyptian long-term strategy “Egypt vision 2030”. The B2B e-Invoicing became mandatory however it begin implemented in stages, as per the ETA’s progressive inclusion calendar which you can find below;
- March 2020: Announcement of mandatory using of electronic invoices
- November 2020: Phase 1 with 134 companies
- February 2021: Phase 2, 350 companies in the second list
- May 2021: Phase 3, the rest of the companies have to enroll in Large Taxpayers Center
- July 2021: Phase 4, mandatory use of e-Invoices for all public sector entities
- January 2022: VAT will no longer be deductible from paper invoices
- April 2023: All taxpayers have to enroll for e-Invoicing
Taxpayers must initially register with the tax authority which will provide the login credentials, API access, and an e-Real certificate. On a daily basis, the taxpayer must report sales invoices and certify their legitimacy. Confirmation can be done through a government webpage or a free smartphone app.
After July 2022 the grace period of the e-Invoice system is reduced gradually. In the past e-Invoice must be sent to the tax authority in 7 days however this rule decreases monthly, from July it’s 6 days. As of January 2023, e-Invoices will be sent the same day of issuance (in real time).
In addition to the e-Invoice system, the e-Receipt regulation was implemented in 2022. The trial period started on 15h of April and the first step of obligation came into force on 1 July 2022 for 153 companies which was published by the tax authority. The scope of the implementation of e-Receipt will gradually expand and the process will cover medium and small enterprises after some time. This process expected to be completed by 2024. As an e-Invoice digital signature is required and and also QR code must be added to the e-Receipt.
ETA introduced an “E-Filing” system for the submission of VAT returns. Taxpayers will be obliged to submit their VAT returns electronically through the ETA’s website.