Mohamed Maait, Minister of Finance announced the launch of the first phase of the electronic invoice system on Sunday for the first time in the history of Egypt, adding that most companies will join the system in succession until the end of June 2021.
In a statement on Friday, Maait said that this electronic invoicing is an important step on the road to digital transformation to achieve Egypt's vision 2030.
"It is also a major step to raise the efficiency of taxation, which contributes to the restoration of the rights of the state treasury in a way that helps achieve financial and economic goals, and enables the state to complete its development path, improving citizens' living standards," the minister pointed out.
The minister noted that the electronic invoice will revolutionize the integration between the tax system and the commercial community in order to make it easier for dealers and introduce the informal economy into the formal one.
He explained that Egypt is one of the leading countries in the Arab world in applying the electronic invoice system as one of the digital transformation projects, which is supported and closely monitored by the political leadership.
He added that the Ministry of Finance and the Tax Authority provide all facilities and support to companies for the compulsory joining of companies to the electronic invoice system.
He pointed to the start of taking all legal measures, including transferring to the prosecution office, against companies that are not committed to joining the system in accordance with the provisions of the new unified tax procedures law.
The Minister of Finance called on companies to quickly take all necessary steps to join the system. Companies and other legal persons are required to register their sales and purchases on the electronic system, as the law requires each taxpayer or taxpayer to issue a tax invoice or receipt in electronic form.
He explained that the electronic invoice system aims to establish a central system that enables the tax authority to follow up all commercial dealings between companies with each other, by exchanging data for all invoices instantly in digital form.
On his part, Reda Abdel Qader, head of the Egyptian Tax Authority stressed that the authority is moving aggressively to modernize and automate the tax administration system, with the support of the Ministry of Finance.
The system reduces the the cost of transactions, gradually dispensing the paper-based archiving of invoices, simplifying corporate procedures with the possibility of “remote inspection”, facilitating “tax refund” procedures, and ending traditional procedures with companies to fulfill invoices.
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