Key Facts about Egypt's Electronic Invoicing System
Egypt has decided to adopt electronic invoicing. The measure was announced in March by the Ministry of Finance through decree Nº.188. It aims to encourage digital transformation, improve fiscal control, and reduce fraud and tax evasion.
The implementation of Egyptian electronic invoicing is being conducted through phases following the gradual incorporation calendar published by the Egyptian Tax Authority (ETA).
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Objectives of Electronic Invoicing in Egypt
- Promote digital transformation in government and businesses.
- Eliminate the underground economy.
- Fight tax evasion.
- Improve tax control.
- Offer equal opportunities to Egyptian companies.
Egyptian e-Invoice Compliance Timeline
- March 2020: Announcement of mandatory use of e-invoice
- November 2020: 1st compliance phase with 134 companies
- February 2021: 2nd compliance phase. (new companies TBA)
- May 2021: 3rd compliance phase. (new companies TBA)
- July 2021: 4th phase mandatory use of e-invoicing for all public sector companies.
- January 2022: VAT will no longer be deductible from paper invoices
Features of the Egyptian Invoicing System
The Egyptian tax authority has opted for a clearance model. Companies must first send electronic invoices to the tax administration for their validation. Once validated, they can be delivered to recipients. Electronic invoices must also be electronically signed to ensure the security of the information exchanged. In Latin America, the most advanced region in terms of electronic invoicing in the world, this type of system is widespread and allows for greater tax control.
Electronic Invoice Format
The system considers the emission and reception of e-invoices, debit notes and credit notes.
The invoice format is JSON or XML.
Which companies will be affected?
All companies operating in Egypt selling taxable goods or services will be affected.
The Egyptian Tax Authority has decided to implement the e-Invoice mandate in phases according to a company’s invoice volumes. The government will announce which companies must comply through the publication of official decrees.
As of July 2021 all public sector companies, economic authorities and state services will also have to comply with the e-invoice mandate.
e-Invoicing Requirements in Egypt
Issuers must be registered in the Egyptian invoicing system.
Invoices must be electronically signed before delivery to the tax authority.
The invoice format is JSON or XML.
All invoices must include a unique UUID (Unique ID) code.
The products must be coded according to the GPC classification of the GS1 standard.
Sustainable Development Strategy (SDS): Egypt Vision 2030
The government’s new invoicing system aligns with the strategies of its sustainable development plan, Egypt Vision 2030. The plan is a set of initiatives which would have Egypt ranked among the top 30 countries in terms of GDP, quality of life, human development, competitiveness, and anti-corruption by 2030.
The implementation of electronic invoicing is a step toward the digital transformation that the country is pursuing.
EDICOM – Your e-Invoicing Partner in Egypt
EDICOM is one of the first companies to offer electronic invoicing services in Egypt that comply with the tax authority’s technical and legal requirements.
EDICOM has participated in the Egyptian government’s e-Invoicing mandate since the initial phases as an e-invoice service provider. EDICOM, private companies and the Egyptian government have exchanged feedback used to optimize the e-invoicing system before its mass adoption by all Egyptian taxpayers.
With the fully integrated Global e-Invoicing Platform, you can send and receive electronic invoices automatically. The platform transforms any invoice format into the Egyptian standard, signing the document electronically and sending it to the government for prior validation. In the event of cancellation or rejection by the Egyptian government, the EDICOM platform will send you a notification, allowing for constant traceability of your invoices. The validated invoices are sent to the recipient according to the format agreed upon between the parties.