EGYPT B2B e-INVOICE
In the Middle East, the digitalization of the economy is becoming increasingly important. Although it is not yet fully compulsory in most countries, KSA and Egypt are leading the way, and Egypt has many e-Invoicing developments.
Egypt has taken many steps towards the digitalization of its economy, which it aims to develop by 2030. Accordingly, it has launched applications such as e-Invoicing and e-Receipts to both increase tax security and contribute to digitalization.
In Egypt B2B e-Invoicing is already mandatory, although the ETA (Egyptian Tax Authority) has announced the implementation will be phased in. The rollout timetable is as follows:
- March 2020: Announcement of the obligation to use electronic invoices.
- November 2020: The first 134 companies with mandatory e-invoice application, announced in Phase 1.
- February 2021: Phase 2 added 350 companies from the second list.
- May 2021: In Phase 3, the remaining companies were obliged to register with the Large Taxpayers Centre.
- July 2021: Phase 4 saw the start of mandatory e-Invoices for all public sector organizations.
- January 2022: It was announced that VAT will no longer be deducted from paper invoices.
- February 2022: Phase 6 started and affected companies were announced.
- June 2022: Stage 7, e-Invoice obligations for certain taxpayers started.
- April 2023: It was announced that all taxpayers must register for e-Invoices.
At the current point, companies will no longer be able to submit paper invoices. If they do, these invoices will not be evaluated.
In Egypt, companies that are mandated to adopt the new electronic invoicing system must go through a registration process with ETA. This registration is a prerequisite for using the system effectively. Once the registration is successfully completed, the company’s information will be collected and made available for transmitting invoices and receipts in either XML or JSON format.
To ensure the security of transaction data between companies, each invoice undergoes digital signing using a hardware security module (HSM) device. This process assigns a unique ID to each invoice, bolstering the security of the entire invoicing system.
For product identification, companies are required to use either GS1 coding or an internal coding system that aligns with Global Product Classification standards. These barcodes and codes serve to standardize product identification, improving cross-border communication and trade efficiency.
How can SNI help you?
With the SNI solution we have developed, the data coming from the user's ERP system is extracted and converted into the format specified in the regulation. Issued electronic invoice reports are sent to the portal online via published APIs.
