400 companies, so far, have joined Egypt’s e-invoice system in its two stages, and a total of 250 documents have been processed by the system since its launch in November 2020, Egypt’s Minister of Finance Mohamed Maait announced on Wednesday.
Egypt launched the first stage of the e-invoice system on 15 November 2020, while the second was launched on 15 February 2021 and is scheduled to close on 15 May.
Maait said that Egypt has been taking serious steps in implementing the national project to rejuvenate the Egyptian tax system under Egypt’s Vision 2030, which aims to ease procedures for taxpayers, as well as enhance spending on improving people’s living standards and improve the level of services.
It is also aiming to achieve tax justice, curb tax evasion, and merge informal economy activities into the formal one, according to Maait.
Maait urged all companies that are registered at the centre of major taxpayers, one of Egypt’s Tax Authority’s (ETA) bodies, to join the system before the deadline, affirming that it’s a mandatory action.
Reda Abdel-Kader, head of ETA said that joining the e-invoice system enhances the companies’ tax positions by classifying them in the low-tax risk group.
Additionally, the system facilitates VAT settlements among companies, upgrades invoice exchange between them, reduces transactions cost, allows the remote tax examination for companies, and eases the process of preparing and submitting tax returns, according to Abdel-Kader.
He added that subscribing to the e-invoice system is mandatory to deal with ministries, economic authorities, public sector companies, the public business sector, and all state bodies, as decreed by the prime minister.
Egypt’s public e-invoice revenues jumped to EGP 4 billion per month in 2020, up from EGP 1 billion, growing by 250 percent owing to the coronavirus, Maait said in December.
The hike is the result of a number of new government services that have become available online to encourage the public to use e-payment.