On the 1st of July 2022, it became mandatory in Egypt for taxpayers to send e-invoices. In the current phase, invoices have to be cleared within 7 days after the issuance.
It is planned that by January 2023 invoices will have to be sent on the same day of issuance.
Egyptian e-Invoice Compliance Timeline
- March 2020: Announcement of mandatory use of e-invoice
- November 2020: 1st compliance phase with 134 companies
- February 2021: 2nd compliance phase. (new companies TBA)
- May 2021: 3rd compliance phase. (new companies TBA)
- July 2021: 4th phase mandatory use of e-invoicing for all public sector companies.
- January 2022: VAT will no longer be deductible from paper invoices
Which companies will be affected?
All companies operating in Egypt selling taxable goods or services will be impacted.
The Egyptian Tax Authority (ETA) has decided to implement the e-Invoice mandate in phases according to a company’s invoice volumes. The government will announce which companies must comply through the publication of official decrees.
As of July 2021, all public sector companies, economic authorities and state services will also have to comply with the e-invoice mandate.
Companies using the new electronic invoicing system in Egypt will be required to register with the system by contacting the ETA. After successful registration, the client’s information will be provided to transmit invoices and receipts in XML or JSON data format. The system allows cancellation and rejection of invoices that have been issued incorrectly. Information such as the vendor’s tax identification number, national ID number, name, and domicile are required in the purchase invoice. A VAT declaration will be automatically filled based on these invoices.
Egypt E Invoicing SAP: How can S4FN help?
By using our invoice add-on, you can send the invoices directly to ETA systems. ETA is the Egyptian Tax Authority.
S4FN Egypt E-Invoice employs API provided by ETA.
S4FN provides a built-in signature service to sign the invoices before sending to ETA system. It can be used with a central certificate provider namely an HSM server or it can be used with the usb dongle.
- All components reside in company infrastructure and S4FN has no access to data.
- Communication is private between the ETA and company.
- The company’s middleware can be used to manage the traffic between SAP and ETA.
For more information about the implementation and pricing, please drop us an email.