Return to mapElectronic invoicing in Egypt
Egypt has implemented a comprehensive electronic invoicing system as part of its national digital transformation strategy, in alignment with the "Egypt Vision 2030" plan. This initiative aims to digitize tax procedures, improve tax compliance, and combat tax evasion.
Characteristics of B2B Electronic Invoicing in Egypt
Egypt’s electronic invoicing system requires all VAT-registered companies to issue electronic invoices. These invoices must be sent in real time to the Egyptian Tax Authority (ETA), enabling greater control and monitoring of tax transactions.
The implementation of Egypt’s e-invoicing system is being carried out progressively, in successive phases following an official schedule defined by the Egyptian Tax Authority (ETA). This phased approach involves the gradual inclusion of different taxpayer segments, starting with large companies and progressively extending to medium and small businesses, as well as public sector entities.
The Egyptian Tax Authority (ETA) has adopted a pre-validation model as the foundation of its national electronic invoicing system. Under this scheme, invoices generated by taxpayers must be sent in advance to the ETA for review and formal validation. Once validated, they may be forwarded to recipients. All invoices must include a unique identifier code, the UUID (Unique ID).
The system supports the issuance and receipt of electronic invoices, debit notes, and credit notes.
Mandatory Use
The mandatory rollout of the e-invoicing system in Egypt was executed in phases:
- November 2020: First phase with 134 large companies required to issue electronic invoices.
- February 2021: Second phase with an additional 350 companies.
- May 2021: Third phase includes the remaining companies from the Large Taxpayer Center.
- July 2021: Fourth phase mandates the public sector.
- January 2022: VAT deduction using paper invoices is prohibited.
- April 2023: All VAT-registered companies must use electronic invoicing.
Since January 1, 2023, all electronic invoices must be reported on the same day they are issued.
Administrative Requirements
Taxpayers must officially register on the e-invoicing platform provided by the ETA. This process involves submitting relevant tax and commercial information, including taxpayer details, ERP system (if applicable), and technical integration specifics. Once registration is validated, access to the platform's digital services is granted.
All products and services included in electronic invoices must be properly coded according to the GPC (Global Product Classification) standard, in line with GS1 international standards. This requirement ensures uniform categorization and facilitates traceability and analysis by the ETA. Companies must assign a valid GPC code to each product, which may require reviewing and standardizing their product catalogs before joining the system.
Invoice Format
Electronic invoices in Egypt must be generated in XML or JSON format. These standardized formats ensure compatibility with the ETA system and allow for efficient automatic validation.
Electronic Signature
To guarantee the authenticity and integrity of the invoices, they must be digitally signed using a hardware security module (HSM) or a USB token. This digital signature is mandatory and validates the origin of the document.
Invoice Archiving
Companies are required to store electronic invoices for a minimum of five years, according to Egyptian tax legislation. The archive must allow for immediate availability in the event of audits or tax inspections.
How Electronic Invoicing Works in Egypt
The electronic invoicing process in Egypt works as follows:
- Registration: Companies must register on the ETA’s e-invoicing system and obtain a digital certificate.
- Generation: EDICOM creates the invoice in XML or JSON format, including a unique identifier (UUID) and digital signature.
- Submission: EDICOM submits the signed invoice to the ETA system for validation.
- Validation: The ETA validates the invoice, assigns an acceptance code, and generates a PDF that contains a QR code.
- Notification: EDICOM receives the ETA’s response with the UUID and the PDF + QR code.
- Acceptance: The ETA makes the issued invoices available to recipients, who have 72 hours to accept or reject them.
Characteristics of B2C Electronic Invoicing in Egypt
Electronic invoicing in Business to Consumer (B2C) transactions in Egypt is a key component of the government's tax modernization plan. Complementing the B2B system, the Ministry of Finance and the Egyptian Tax Authority (ETA) launched a pilot project in April 2022 to implement the electronic receipt (e-receipt) for retail and consumer transactions.
This initiative is part of a comprehensive plan to automate the entire tax management system, aiming to increase transparency, reduce the informal economy, and improve tax collection.
The e-receipt is a digital receipt that companies must generate and provide to the final consumer at the time of sale. Unlike B2B invoices, which require exchange between registered taxpayers, the e-receipt is intended to record sales to individual consumers, as seen in point of sales in physical stores or e-commerce platforms.
Mandatory Use
The implementation of the e-receipt system follows a phased approach, similar to the B2B model. The main phases were:
- July 2022: First 153 taxpayers joined the pilot system.
- October 2022: ETA invited an additional 400 companies to join the system.
- January 15, 2023: The requirement expanded to 2,000 companies, marking the start of widespread adoption.
Characteristics of e-receipt
- Automatically generated when a transaction is made.
- Must include all relevant transaction details (products, prices, applicable taxes, payment method, etc.).
- Includes a QR code validated by the ETA, which permits its verification.
- Companies have a maximum of 24 hours from ticket issuance to send the receipt to the ETA.
EDICOM enables the automatic generation and management of B2C electronic receipts in a completely automated manner, in compliance with Egyptian Tax Authority (ETA) requirements.
Our platform integrates with the client’s ERP to extract data of each sale and generates the electronic receipt in real time, applying the digital signature and sending it directly to the ETA for validation.
Once validated, EDICOM receives the ETA’s response and integrates the receipt status (accepted, rejected, etc.) directly into the ERP. The entire process is automatic, secure, and traceable, requiring no manual intervention.
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