Egypt will require e-invoices to process all VAT refunds and deductions. The change is part of Egypt’s multi-phased move to e-invoicing. According to Egyptian authorities (Arabic text) the new requirement will take effect from 1 January 2022.
Multi-phase e-invoicing rollout
Egypt’s e-invoicing system is currently in its second phase. Currently, the system is mandatory for specified taxpayers with a high turnover. The third phase, scheduled for 15 May 2021, will further expand the number of participating large taxpayers
Analysts expect the fourth phase, scheduled for 1 July 2021, to make e-invoicing mandatory for all B2G filing.
Almost 400 companies have already signed up to Egypt’s e-invoicing system, according to Egypt’s Finance Minister.
Why is Egypt moving to e-invoices?
Egyptian authorities say the new e-invoicing system will encourage VAT compliance and make filing easier and more efficient. Officials say that e-filing will also “reduce the administrative burden, cost of transactions and the need to archive paper invoices”.
Authorities also hope that e-filing will reduce the needs for audits and make the tax refund process more efficient.
How to connect
Egypt’s tax authorities have developed an API through which companies can integrate to the system.
Businesses will also need to ensure they have the necessary software in place, and train staff accordingly. When filing, businesses must comply with all mandatory fields, using the specified codes.
To ensure the integrity of invoicing, businesses must attach an electronic signature to e-invoices. Invoices must then be validated before they can be delivered to recipients.
Technology that makes global VAT simple
Advanced VAT compliance software makes meeting your global VAT obligations faster, simpler and more efficient. But these days, VAT software is becoming more than a nice-to-have. An increasing number of countries require systems to manage electronic filing and, in some cases, live reporting. In these cases, businesses need effective VAT compliance software.
Vatglobal developed powerful VAT compliance technology that automates manual compliance processes, eliminates human error and ensures you are always 100% VAT compliant. Get in touch with Vatglobal to get a complete digital solution for all your global VAT compliance needs.