Egypt, a country with a rich history and a promising economic future, has become one of the first African nations to adopt digital solutions for buying and selling.
E-invoicing eliminates the need for manual, time-consuming, and error-prone processes, resulting in significant efficiency gains.
In March 2020, the Egyptian Ministry of Finance began implementing its plan to introduce mandatory B2B e-invoicing and the clearance model of invoicing through Resolution N. 188. Additionally, B2C e-invoicing has also been introduced.
The Egyptian Tax Authority is currently managing the implementation of this e-invoicing project in Egypt. The ETA is responsible for installing and supervising the e-invoice approval system. They will verify and approve suppliers' invoices before sending them to customers.
The African continent is undergoing digital transformation, in line with Agenda 2063: The Africa We Want. E-invoicing is one of the main axes of this transformation, which aims to make Africa a global power in the coming years.
Timeliness for the widespread adoption of B2B e-invoicing in Egypt
The implementation of the e-invoicing system in Egypt has been gradual and based on the invoicing volume of taxpayers.
In March 2020, the mandatory use of e-invoicing in Egypt was announced. The first phase of e-invoicing massification took place on 15 November, with 134 large companies joining through the Egyptian Tax Authority.
Throughout 2021, more companies joined B2B e-invoicing in Egypt in three phases (February, May and July). The latest phase also mentioned e-invoicing at the B2G level.
As of January 2022, VAT is no longer deductible on paper invoices. Additionally, by April 2023, all Egyptian companies are required to issue electronic invoices in the B2B sector.
What is the current status of B2G and B2C e-invoicing in Egypt?
Egypt has a de facto B2G mandate, as per the Council of Ministers' Decree No.1602 of 11 July 2021. This decree obliges government entities to implement mandatory e-invoicing.
Companies that are required to use the e-invoicing system must submit invoices and receipts electronically. Additionally, they must be transmitted electronically to the tax authority in real-time for validation before being sent to the customer.
In April 2022, the ministry initiated a pilot project to automate the tax management system for B2C e-invoicing. As of July 2022, an accession timetable has been initiated:
- In July 2022, 153 companies were required to comply with the e-receipt obligation.
- By October 2022, an additional 400 companies will be required to comply.
- Starting on January 15th, 2023, 2000 Egyptian companies will be required to issue e-receipts.
Egyptian e-invoicing model
Companies that are required to adopt the new e-invoicing system in Egypt must register with the Egyptian Tax Authority (ETA) in the designated system.
After registration, customers will receive the necessary data to process e-invoices and e-receipts in structured formats such as XML or JSON.
The system also allows for the cancellation or rejection of erroneously issued invoices. On the other hand, the VAT return will be automatically generated from the submitted invoices.
In Egypt, electronic invoices must include:
- Supplier and customer tax identification numbers.
- Customer information and national identification number.
- The ETA must return the UUID (Unique ID) code when approving the invoice.
- Supplies of goods based on GS1 coding or similar coding linked to the Global Product Classification rules.
SERES, an ideal partner for multi-country projects
To comply with international obligations, it is recommended to contract a global e-invoicing solution that is certified in all the countries where your company operates.
The SERES Multi-Country e-Invoicing solution offers several advantages for companies:
- The solution meets all legal and technical requirements in each country where it is used. Electronic invoicing streamlines workflows between subsidiaries or companies located in different countries.
- Our service provides a single point of collaboration for internal information exchange, with automatic integration and report generation.
- Real-time visibility allows for efficient management of treasury, debts, and accounts payable by providing up-to-date information from all subsidiaries.
- The global operator ensures automatic adaptation without the need for each subsidiary to adjust to a different provider. Additionally, a support and help service is available throughout the activation process.
Would you like to learn more about e-invoicing in Egypt?
