Minister of Finance Mohamed Maait confirmed in a statement on Tuesday that starting 1 April 2023, proof of costs or expenses when submitting tax returns, deductibles, and VAT refunds will not be considered unless e-invoices are submitted.
He added that all companies operating in Egypt will have joined the e-invoice system by December of this year.
“We have succeeded in implementing the e-invoice system, and more than 313m electronic documents have been uploaded so far,” said Maait.
He added that the e-invoice system is based on the instantaneous exchange of invoice data in a digital format without relying on paper transactions to limit the tax community, which helps facilitate tax examination procedures for companies in the shortest possible time, end repeated fulfilment visits, and examine files of purchase and sale invoices electronically.
This also opens up the possibility of remote examination and facilitating tax refund procedures, the process of preparing and submitting tax returns, in addition to strengthening the tax centres of companies by placing them in the list of low tax risks and simplifying the settlement procedures between companies.
For his part, Head of the Tax Authority Mokhtar Tawfik confirmed that the timetable was announced to oblige all companies registered in tax offices in all governorates to issue electronic tax invoices for the goods or services they provide according to the list of financiers published on the website of the Tax Authority https://www. eta.gov.eg
This is the eighth phase — which includes four sub-stages — of transitioning companies to the e-invoice system.
Tawfik explained that the first sub-phase includes obligating companies registered in the governorates of Alexandria, Beheira, and Marsa Matrouh to join the e-invoice system by 15 September, while the second sub-phase includes companies registered in Sharqeya, Gharbeya, Kafr El-Sheikh, Menoufiya, and Damietta by 15 October.
Moreover, the third sub-phase includes companies registered in Daqahleya, Port Said, Ismailia, Suez, North Sinai, and South Sinai by 15 November, while the fourth sub-stage includes companies registered in Fayoum, Assiut, Sohag, Minya, Qena, Beni Suef, the New Valley, Luxor, Aswan, and the Red Sea.
This decision applies to all financiers and clients registered with the Tax Authority across the country; even those who were not issued mandating decisions to join the system at any previous stage.
