Electronic Invoice Egypt is an electronic document written automatically using a computer and algorithmic programming, and it is issued, reviewed and signed by the Internet and modern technology systems. Certainly, this electronic document has characteristics and components that distinguish it from other paper documents that are supposed to be extinct soon in light of the programmed digital transformation.
Electronic billing features:
The characteristics and advantages of electronic invoice Egypt are as follows:-
(First) It contains the so-called UUID identification number: a unique number by which each invoice is numbered to distinguish it from other invoices. To clarify, the electronic invoice identification number is not the same as the internal invoice number issued by the company, but it is completely different from it.
Also, each electronic invoice has a fixed and unified form of content that never changes within the company.
What distinguishes the electronic invoice also is the unified code provided by the electronic system for all goods and services. This code ensures the complete security of the invoice data and the preservation of its content.
In addition to the instant notification: it is a real-time message sent by the electronic system to the seller and buyer, alerting them to share the billing data.
One of the features of electronic invoices is the ability to modify the invoice by deducting an item or adding a new item. However, it is required that the modification process takes place within a specific legal time for cancellation.
In addition, the invoices have a digital file for taxpayers that is linked with the taxpayer’s data previously registered with the tax authority. The purpose of this feature is to facilitate the interaction between the taxpayer and the tax authority.
Format of electronic invoice components:
The electronic invoice formula in Egypt that can be issued includes a group of components, some of these components are similar to the components of the paper invoice, and others are distinguished by the electronic invoice from the paper one. These components include:
Ordinary paper invoice items specifying the type of goods and services, the prices of the good or service provided, the commodity tax, and others.
The data of the funder, for example, personal email, name, capacity, national number, ..etc.
In addition to the tax registration number.
Electronic signature:- It is the official signature of the financier or the owner of the commodity, but it was issued in the form of an encrypted message that is compatible with the regulations and conditions for issuing the electronic invoice.
Conditions for issuing electronic invoices:
It is worth noting that, in addition to the formula and components of the electronic invoice, the Ministry of Finance and the Egyptian Tax Authority have set some conditions that those who are obligated to digitalize invoices, as well as those wishing to implement the system, must follow until their invoices are approved and issued. These conditions include the following:-
First of all, the financier or company that is obligated or willing to implement invoicing automation and digital transformation must obtain a certificate for the electronic signature.
The conditions include that the portal of the electronic billing system (Portal) be used.
Hence, it is necessary to follow the coding systems approved by the system, which are the GS1 system and the GPC system
It is also necessary to mention the data of the official responsible for managing the electronic billing system inside the invoice. For example, his name, title, e-mail address, ID number, mobile phone number.
Among the conditions for issuing invoices is also the implementation of the full procedures established for the registration of companies in the electronic system.
Also, the completion of the integration process with the tax authority.
Procedures for registering in the electronic invoice Egypt:
In conjunction with obligating the application of the electronic invoice system and the requirement to use the system’s portal through the Google search engine, the Ministry of Finance issued a set of procedures and steps that must be taken by the obligated or those wishing to register in the system, and they are carried out according to the following mechanism:-
A- First, the financier or the owner of the company sends all the documents required for registration to the e-mail to the Tax Authority einvoice@eta.gov.eg, and these documents include the value-added tax registration certificate, the tax card of the financier, a letter stamped from the company to approve the authorization.
b- Then, he waits until he receives an e-mail from the authority, in which he finds a specific date for creating the private digital file.
c- At the specified time mentioned in the letter of the authority, the taxpayer submits the original documents and the authorization letter to the tax office.
d- Then, he resets his computer settings, through which he will prepare invoices.
A- Thus, he downloads the UAT/Pre Board application on the computer via the Root CA Certificate file.
H – After that, the applicant will receive an email with an invitation from the Tax Authority to register in the electronic invoice system.
g- Immediately, he must confirm receipt of the invitation received in the e-mail. Then he completes the required data in the invitation and presses the word “Save”.
D- Thus, he will receive OTP on his mobile phone, after entering it, he is considered officially registered in the system.
Stages of implementing the electronic billing system in Egypt:-
In fact, when the procedures for implementing the system in Egypt were developed almost since the beginning of 2020, the implementation of these procedures was divided into several stages, and it is gratifying that the plan is going perfectly, as the application of the system has passed most – if not all – of these stages with great success. In implementation, as follows:
The first phase, which began in mid-November, resulted in the entry of 134 companies registered in the Center for Major Financiers of the Electronic System.
The second phase, which was in mid-February 2021: obligated 347 companies registered in the tax center for major taxpayers, to implement the system and issue electronic invoices.
The third stage, which was issued in the middle of last May: witnessed the decision to apply the electronic invoice system to the rest of the companies that registered in the center of major financiers.
The fourth stage: It is scheduled that the rest of those subject to the application of the new electronic system will be obligated to issue any invoices.
Subject to the application of the electronic billing system:-
One of the most famous questions that concern many, on the issue of electronic bills, who are obligated or subject to entering the system?! …here’s the answer.
Subject to the electronic invoicing system are:
Medium financiers holding Egyptian nationality.
Major Egyptian financiers.
Companies affiliated with the tax center.
Companies that, upon their establishment, obtained the support of the state or legal persons at a rate exceeding 50% of the basic capital.
Local Administration Units.
All holding companies.
The public sector and the business sector.
public service and economic bodies.
Advantages of entering the electronic billing system:
We show you some of the advantages already obtained by merchants and financiers who have undergone the application of the automated billing system during the previous stages, which are:-
Ease: The modern system of issuing invoices has achieved an important advantage, which is the ease of conducting most transactions. For example, invoicing made it easier for companies to settle the value-added for ZI much earlier.
Speed: Thus, the ease of carrying out the operations required by invoice processing resulted in more time spent in the paper system and the completion of a large number of invoices quickly and in record time.
Security: The system also facilitates data validation prior to issuance, in addition to electronic preservation and signature, which led to achieving reassurance and security regarding many concerns about errors that occurred when making a paper invoice.
Saving money: These are some of the variable costs that were calculated on the company at the time of establishment, and related to preparing invoices such as papers, pens, archiving, and transportation and sending costs.
Justice: Electronic bills achieved justice among all merchants, business owners and companies, as it limited tax evasion, the hidden economy and all illegal transactions. Thus, everyone is equal under the law and fair regulations.
