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Your comprehensive guide to learn about the e-invoice program

دليلك الشامل للتعرف على برنامج الفاتورة الالكترونية | ECPA

The E-invoice program

Recently, the main objective of the Egyptian Tax Authority has become to spread awareness and tax culture among the Egyptian people, to make sure that none of them is exposed to tax crimes or violations. One of the most important methods yet an expensive one used by the Tax Authority to grant the best interest for both the Authority and the people is the Electronic Invoice program.

During the last decade, the Authority has tended to automate most government procedures, the first of which is tax procedures, and implement them electronically. Therefore, Article No. (35) of the Unified Tax Law of 2021 is dedicated, which concerns that all taxpayers and financiers must join the electronic Billing program, and it is mandatory and not optional.

In Resolution 291 of 2021, the Authority announced that companies that do not comply with this will be prevented from dealing with public sector companies, governmental and public bodies, business sectors, or companies in which the State participates by at least 50%. It also announced that exporting bills will not be recognized unless it was issued through the electronic invoice program. 

?What is The Electronic 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

مراحل تطبيق برنامج الفواتير الالكترونية على الممولين | ECPA

Stages of applying electronic invoices to financiers

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.

?What is an electronic invoice document

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 

مميزات برنامج الفاتورة الالكترونية | ECPA

?What are the advantages of the Electronic Invoice program

The Egyptian Tax Authority has set several conditions for accepting tax invoices, including
The 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 item
The financier retains the principal of the invoices he releases for five consecutive years
Data must be recorded on the invoice, such as its serial number, date of editing, buyer's name, number, address, item category, and data
The category of tax good or service must be registered and the value of the value tax due is indicated
The 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

Tax invoice terms

It cannot be manipulated
It can be reviewed and verified electronically
It can be signed electronically and sent to and from anywhere in the world. A document with standard specifications that cannot be falsified
When modified, the seller and the buyer are referred to together
It 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 costs
The electronic tax invoice program is one of the methods of the state to eliminate the informal economy, which does not commit to paying any taxes
E-invoices help the company get rid of the clutter of paper records, writing, and archiving burdens.

What are the parties that deal with the Electronic Invoice program

Egyptian Tax Authority

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

Companies

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.

Electronic Invoice Program Features

:Each document of the electronic invoice has a code

Each invoice is given its unique identification number, which can be accessed immediately once the code is written in the search, which saves a lot of time and effort, such as in paper bills

Integration between The Electronic Invoice software and enterprise resource planning software ERP

The electronic billing program has an API interface. This interface contributes to the immediate registration between ERP programs and the billing program. All you need is to install some ERP programs on your electronic device and adjust its settings which will be integrated immediately

:The standardized form of invoices

The billing program has a distinctive uniform form of invoices despite the different accounting programs since the data used in the program conveys the format and does not convey the invoice form of the financier

:Each financier has a special electronic file

Each financier has a file containing all his private data such as the name of the financier, his company, address, registration number, etc

:The possibility of electronic signature

Each financier has its digital fingerprint for the electronic signature

Invoices can be issued and amended

:The possibility of coding services and goods

There are two coding systems in the program, the GS1 system for global coding and the EGS system for Egyptian coding

How to register in the Electronic Invoice program

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

?How to register an invoice within the program

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 

our team - Mohamed Abdelrahman

Member of the Board of Directors for Personnel Systems Affairs

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