Mokhtar Tawfik, head of the Egyptian Tax Authority, has said that as of next April, paper invoices will not be accepted when submitting tax returns, as well as when deducting or refunding value-added tax, as only electronic invoices are to be accepted.
In a statement on Tuesday, Tawfik added that the electronic invoice system will be fully applied by mid-December 2022. He called on companies to quickly join the system to avoid legal action taken against them.
He pointed out that the timetable for the eighth phase of applying the electronic invoice system has been announced to oblige all companies registered in tax offices in all governorates to issue electronic tax invoices for the goods they sell or perform services, according to the list of financiers published on the website of the Egyptian Tax Authority. The eighth phase includes four sub-phases. The first sub-phase includes obliging companies in Beheira and Matrouh to join the electronic system as of 15 September.
Tawfik indicated that joining the electronic system is a prerequisite for dealing with various government agencies and sectors.
He explained that companies that do not join the electronic invoice system will not be able to deal with ministries, economic authorities, public sector companies, the public business sector, or state offices, in accordance with the decision of the Cabinet. The decision included local administration units, public service and economic bodies, other legal entities, public companies, holding companies and their subsidiaries, companies whose capital the state and other public legal persons contribute more than 50% offering services or selling commodities.
