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Egypt VAT e-invoice update

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. This follows the phased introduction of mandated e-invoices.

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Egypt e-invoicing mandated further businesses February

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 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

VAT Calc’s in real-time global Calculator and Auditor  services produce instant and accurate tax calculations into your ERP, billing, e-commerce or e-invoicing systems.

Middle East & Africa e-invoicing

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