Taxes began to apply today .. What do you know about the invoice system?

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03:40 PM

Sunday 15 November 2020

Books – Mustafa Eid:

Today, Sunday, the first phase of the electronic invoice system was launched, for the first time in the history of Egypt, which includes the compulsory application of the system to 134 companies, provided that the rest of the companies join the system in turn until the end of June 2021, as this stage relates to the invoices for transactions between companies.

In the following lines, Masrawy lists the most important information about the electronic invoice system, which the government began implementing from January 2020, and the importance of the government’s implementation of it:

What is the electronic bill system?

The electronic invoice system is a processing system that uses advanced information technology to convert the issuance of manual and paper invoices into electronic copies that are more rapid and efficient for data exchange and record keeping between commercial parties (source and recipient).

These electronic copies have a unique, tamper-proof identification number that can be digitally verified. They are also a standard document with uniform characteristics and components, and they are signed electronically.

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 in a digital format instantly.

The parties participating in the electronic invoicing system are the companies that carry out sales and purchases of goods and services to and from other parties, and the tax authority is the authority responsible for monitoring the sale and purchase operations, ensuring fair trade and increasing voluntary commitment.

And the head of the Tax Authority issued a decision No. 386 of 2020 to oblige 134 companies registered in the tax center for large financiers (as a first stage) to issue electronic tax invoices, starting today, Sunday, with the rest of the companies joining the system in succession until the end of June 2021.

What are the characteristics of the electronic bill system?

A unique number for the invoice that does not repeat, a unified form and content of the invoice, a unified coding of goods and services, an electronic signature to ensure complete security of the invoice data and proof of legal authenticity for the users of the system, and instant notifications for both the seller and the buyer for sharing invoice data, saving the invoice data and the ability to review and print it.

What is the importance of the electronic bill system?

The electronic invoice system is an important step on the road to digital transformation to achieve Egypt’s vision 2030, and it is also a major step for developing the tax system, raising the efficiency of tax examination, eliminating the phenomenon of fake invoices, and combating tax evasion

This contributes to preserving the rights of the state treasury, in a way that helps achieve financial and economic goals, and improves the citizens’ standard of living and the services provided to them.

It is expected that the electronic invoice will contribute to facilitating the dealers and introducing the informal economy into the formal economy, as well as assisting in the digital transformation of commercial transactions and dealing with the latest technical methods, and formally verifying the data of the source and recipient of the invoice and its contents.

The application of the system also aims to eliminate the black market and the informal economy, achieve the principle of equal opportunities and justice among companies operating in the Egyptian market, and facilitate and accelerate tax procedures.

The electronic invoice system helps financiers to enhance their tax positions by classifying them among companies with low tax risks, and to facilitate the procedures of settlements between companies with regard to value-added tax, and to update the method of exchanging invoices between companies.

The new system also helps reduce the administrative burden, reduce the cost of transactions, gradually dispense with archiving invoices on paper, simplify corporate examination procedures with the possibility of “remote inspection”, facilitate “tax refund” procedures, the process of preparing and submitting returns, and ending the traditional procedures with companies to meet Invoices.

How does the government help companies implement the system?

The Ministry of Finance and the Tax Authority are working to provide all means of support and provide information that makes it easier for financiers to register in the system, complete integration with it, continue operating and overcome any obstacles they face through [email protected] or the hotline (16395), as has been done Conducting a number of workshops for companies participating in the system.

The Ministry of Finance called on companies to quickly take all necessary steps to join the electronic invoice system, as according to the provisions of Article 35 of the Unified Tax Procedures Law, companies and other legal persons are required to register their sales and purchases on the electronic system.

Article 37 of the same law also stipulates that each taxpayer or taxpayer is obligated to issue a tax invoice or receipt in electronic form.

This month, the Ministry of Finance and the Tax Authority are holding a major celebration to honor the companies that have successfully joined the electronic invoice system, and were able to implement the steps and requirements for integration with it on time.

While the ministry warned that it will begin taking all legal measures, including transferring to the prosecution office, against companies that are not obligated to join the system, in accordance with the provisions of the new unified tax procedures law.





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