Egypt: What does B2B e-invoicing look like in Egypt?

October 28, 2021

Egypt has implemented changes to its tax legislation in order to make e-invoicing mandatory for a number of companies. 

Similar to other countries, the goals of the Egyptian government of such measures are to:

  • improve and simplify tax collection
  • minimize the VAT gap
  • increase transparency for both the tax office and companies
  • facilitate tax compliance. 

In this article, we’ll look into e-invoicing for B2B businesses in Egypt.


For which companies is e-invoicing mandatory in Egypt?

Electronic invoicing and clearance have been introduced by the Egyptian Tax Authority (ETA). At the moment, more than 100 of the largest Egyptian companies are required to issue electronic invoices, using the portal of the ETA, and other companies will soon need to begin issuing e-invoices to their customers, as well. ETA’s objective is to transition to a fully electronic and digitalized invoicing system in the next years. 

Egyptian businesses who issue e-invoices need to: 

  • Add specific information and fields on all their invoices
  • Issue and sign invoices electronically, through ETA’s portal
  • Have their invoices verified and approved by the ETA 
  • Send invoices to customers after validation from the tax office.

 

How does B2B e-invoicing work in Egypt?

Businesses who are required to issue electronic invoices will need to register at the ETA’s portal by contacting the tax authority. Once they register, they’ll be able to issue and send invoices through the online portal. The format of the e-invoices needs to be either JSON or XML. In case an invoice was issued incorrectly, the issuing company will be able to cancel and reissue it. 

Egyptian e-invoices need to feature the full details of the supplier: 

  • Tax ID number
  • Full name and address
  • National ID number


E-invoicing will then allow for the automatic filing of VAT returns, with information directly collected from invoicing data.

E-invoices will also feature an electronic signature, for which companies need to use a special device, known as a Hardware Security Model (HSM) device. Upon signature, each invoice will be assigned an individual ID number, which will facilitate traceability, security, and data exchange between businesses.

Through the ETA’s portal, it’s also possible to issue electronic credit and debit notes, which need to include the original invoice’s ID number. 

Businesses will need to use an internal coding system or GS1 coding, which is aligned with product classification standards; barcodes are used for the purposes of international trade. 


How can you start using the Egyptian e-invoicing system with an ERP system? 

You can use your ERP system to integrate it with the Egyptian Tax Authority’s portal. For this, you need to: 

  • Register on the ETA platform
  • Invite all representatives who will handle invoices
  • Connect APIs during the registration process
  • Register for the Egyptian eSeal certificate from an official provider
  • Log in and set up APIs.

If you’re operating in Egypt, we advise you to look into e-invoicing as soon as possible, in order to be prepared for its full implementation and to meet the business challenges of the new invoicing system.


Need a help with e-invoicing in Egypt?

We are aware that new regulations have a substantial impact on how businesses operate. That’s why we built Fonoa Reporting, a solution that automatically reports sales transactions to tax authorities around the world, including Egypt.

If your business is affected by real-time invoice reporting obligations anywhere in the world, reach out to us, and we will help you automate the invoice reporting process.