Your comprehensive guide to learn about the e-invoice program

An electronic invoice program or system is a system that uses modern technological tools to process procedures regarding invoice issuing, whether paper or manual, and convert them into electronic digital copies, to provide speed and accuracy in exchanging data and tax information and keeping commercial records between companies, exporters, and importers

The Unified Tax Procedures Law contains several articles on the mandatory electronic invoice, which we will mention later. Article 71 of the Law also explained the penalty for failure to comply with the electronic tax invoice program, in which a fine of not less than 20,000 pounds and not more than 100,000 pounds is set Egyptian

The implementation of the electronic tax invoice system has been divided into several stages

The first phase included approximately 134 major financiers’ companies starting in mid-November 2020 following Resolution 386 of 2020

347 other major financiers were added in mid-February 2021 following Resolution 518 of 2020

All remaining major financiers’ companies have been added starting in mid-May 2021 following Resolution 85 of 2021.

Mediterranean financiers’ companies in Cairo Governorate have been applied to them as of mid-September 2021 following Resolution 195 of 2021.

3737 investment companies and joint-stock companies in the Cairo region complied with the resolution from mid-December last following Resolution 443 of 2021.

Other joint-stock companies and investment companies are obliged to issue electronic invoices starting in mid-February 2022 following Resolution 619 of last year

It is a document that is issued electronically as well as sent and received in an organized manner. It can also be processed electronically and automatically

The electronic invoice system is an integrated system based on modern technology in order to keep pace with development, and is characterized by the presence of many characteristics, the most prominent of which are

  The Egyptian Tax Authority has set several conditions for accepting tax invoices, includingThe financier is obliged to make a tax invoice for every good or service it provides. The financier should keep the original invoice and provide a copy of the invoice to the buyer of the itemThe financier retains the principal of the invoices he releases for five consecutive yearsData must be recorded on the invoice, such as its serial number, date of editing, buyer's name, number, address, item category, and dataThe category of tax good or service must be registered and the value of the value tax due is indicatedThe financier is obliged to record the data of that invoice in his tax file. The terms of the tax invoice vary from one country to another. The accounting company “ECPA” takes into account this, as well as all international accounting and tax laws  

The Electronic Invoice program provides many advantages such as

  It cannot be manipulatedIt can be reviewed and verified electronicallyIt can be signed electronically and sent to and from anywhere in the world. A document with standard specifications that cannot be falsifiedWhen modified, the seller and the buyer are referred to togetherIt guarantees the rights of its customers. The electronic invoice program gives specific powers to each party to which it does not allow mixing of powers. Low costsThe electronic tax invoice program is one of the methods of the state to eliminate the informal economy, which does not commit to paying any taxesE-invoices help the company get rid of the clutter of paper records, writing, and archiving burdenس

It is the government body authorized to monitor purchases and sales of individuals and companies and ensure fair trade.

Companies are responsible for trading purchases, selling, buying, or providing services. Buyers of goods and services are mentioned in the context of the electronic invoice program as the original financiers, i.e., they include leading financiers and receiving financiers.

The Authority offers two ways to register on the system to facilitate financiers

Registration by emailing the Authority where you apply to create an electronic file. A copy of the identity of the authorized person, a copy of the tax registration card and tax card, a copy of a letter of authorization from the company for a legal representative, and his personal email and phone number are attached

The Authority has recently provided a way for the financier to register himself by first obtaining your electronic signature through one of the companies authorized to do so, namely Misr Clearing and Depository Company (MCDR) or Misr Company for Digital Signature Service and Information Security

After obtaining the electronic signature, you can register via the following link

https://profile.eta.gov.eg/signUp

In Case the financier does not use any ERP program and the number of invoices does not exceed 200 invoices, the financier submits a request to the head of the tax commission to issue invoices, and then the department sends a representative to ensure that the program does not exist and the number of invoices. In case of any change, the delegate or the authority will be notified or offered to the financier himself for legal accountability

The other best method is to register invoices through the ERP program and link it to the electronic invoice program

Companies are currently resorting to a tax accountant or legal consultant to register with the electronic invoice program to save time and effort, increase accuracy and proficiency and ensure the integrity of data registration. This is what ECPA dose, which is one of the largest tax consulting and accounting offices in Egypt and UAE

:ECPA services include

Registration in the electronic invoice program and electronic tax invoice

Tax advice

Legal advice at any time

Record your bills through ERP programs and link them to the electronic invoice software

Preparing electronic tax returns

Calculation of electronic tax

Dealing with the best public accounts program and the best accounting program

Internal audit services and external review

Contact us now and get free legal advice