Key Facts about Egypt's Electronic Invoicing System
Electronic invoicing in Egypt will become mandatory beginning on 15 November 2020. 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 project is currently in its pilot phase. During this testing stage, participant companies are discussing first impressions and experiences with the government to optimize the billing system before it is launched to the rest of the taxpayers.
Once the testing period ends in November, the Egyptian government will begin largescale rollout whereby 134 companies will implement the system. This measure was announced by the Egyptian Tax Authority (ETA) in decree No. 386. The remaining taxpayers will join gradually, according to annual turnover. EDICOM is one of the companies participating in the initial phase as an electronic invoicing technology provider.
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.
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.
Which companies will be affected?
All companies operating in Egypt selling taxable goods or services will be affected. The first phase will incorporate 134 companies. All other taxpayers will be added in a staggered manner according to their annual turnover.
When does the requirement come into effect?
The use of electronic invoicing in the B2B sector will become mandatory on 15 November.
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.
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.