July 2023 Paper invoices now invalid as mandatory e-invoicing rolled out B2B and B2C
Egyptian tax payers will no longer be able to rely on paper VAT invoices for the purposed of VAT deductions from 1 July 2023. This follows the phased introduction of mandated e-invoices and e-receipts. B2B mandatory invoicing should be completed for all taxpayers by April 2023.
Any old paper invoices may still be used as a basis for VAT deductions.
April 2023 – 4th round of taxpayers onboarded to mandatory e-receipts
The Egyptian Tax Authority (ETA) has confirmed that the latest round of taxpayers have been onboarded for electronic receipts. This was completed on 15 April 2023.
The electronic receipt system is based on the establishment of an electronic central system that enables the Tax Authority to follow up all commercial transactions for the sale of goods and the provision of services between sellers in sales and service centers and between consumers (B2C), and to verify their validity through electronic integration with the vending machines at Merchants and service providers.
Egypt e-invoicing mandated further businesses February 2022
Egypt opened its e-invoicing regime to the sixth round of businesses on 15 February 2022. The project was started in November 2021 with 134 of the largest companies. The Egyptian electronic invoice system is a pre-clearance continuous transactions control regime. Registered companies must issue invoices to the tax authority’s platform for basic validation and notification to be sent to the customer.
B2C e-invoicing was mandated from July 2022.
Full Egyptian B2B invoicing by April 2023
The Egyptian Tax Authority (ETA) has been phasing in its mandatory electronic invoicing regime, starting 15 November 2021 with over 100 large (‘senior’) taxpayers. This was extended to medium and smaller enterprises and will be completed before 15 September 2021. From December 2021, over 3,000 taxpayers in the Cairo region will be obliged to join. It is estimated by ETA that all B2B invoices will be mandated for government-cleared e-invoicing by April 2023.
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The ETA system includes pre-clearance of sales invoice whereby reported draft invoices are given a UUID (Unique ID) code prior to sending to customers.
You can follow VAT Calc’s global live VAT invoice transaction and e-invoice blog with country-by-country real-time reporting plans. All goods and digital services providers are subject to e-invoicing requirements too since 15 September 2021.
E-invoicing processes
The steps to adopt the new e-invoice regime are as follows for eligble taxpayers:
- Selected taxpayers must first register with the ETA to create a digital account.
- They will be provided with an eSeal certificate from one of the certified e-invoice providers
- They will employ a hardware security devise to electronically sign invoices with a unique ID for their invoices.
- When ready, they may then commence reporting invoices, credit and debit notes live in XML or JSON formats to submit and retrieve invoices and related documents
Invoices should include:
- Tax identification number of the supplier and their customer
- Details of customer and national ID number
- UUID (Unique ID) code, returned by the ETA on invoice approval
- Product supplies based on GS1 coding or similar linked to Global Product Classification standards
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