Egypt Will No Longer Accept Paper Invoices for Deducting
As of January 1, 2022, paper invoices will no longer be tax-deductible in Egypt. VAT will only be deductible from e-invoices.
The new regulation on e-invoices is included in Decree No. 125 of 2021, published by the Ministry of Finance of Egypt.
Egypt is in the process of rolling out e-invoicing across the country. The government has established a progressive implementation model based on the turnover of all companies that sell goods or services subject to taxes. However, it is possible to sing up to new system on a voluntary basis.
This decision is part of the national project to modernize and automate the tax management system to improve accountability by taxpayers, as well as fiscal and financial control.
The Government estimates that more than 411 companies have joined in the first and second stages of implementation of the e-Invoicing model.