E-Invoicing Deadlines are critical for business owners to keep in mind.
In March 2020, Egypt’s Minister of Finance announced Decree 188/2020 requiring VAT taxpayers to generate e-invoices as part of the country’s digital transformation.
The Chairman of the Egyptian Tax Authority has been assigned the authority to set the circumstances, technical requirements, and implementation phases for the e-invoicing system under this Decree of the Egyptian Government.
Before we talk about E-Invoicing Deadlines, let’s talk about what an E-invoice is. An E-invoice is an electronic document that shows the commercial transactions between people who sold goods and services. Such a document must meet specific requirements and be signed electronically to make it valid.
What is the time restriction for creating an e-invoice?
Egypt’s e-invoicing mandate began in 2020 and has been gradually expanded since then. Alternatively, the B2G e-invoicing requirement will take effect in July 2021 and apply to all significant enterprises. As of 2022, this responsibility will be extended to all businesses, and Egypt will also implement a B2B obligation.
Is e-invoicing mandatory for all?
To meet those deadlines, a thorough grasp of Egypt’s Mandatory E-Invoicing requirements is necessary.
In Egypt, the introduction of mandatory e-invoicing is taking place in phases. First-phase firms included 134, with coverage beginning November 2020. Three hundred and forty-seven more firms will join the system in February of 2021. All big Egyptian taxpayers will be required to use e-invoicing by July 2021. Finally, all Egyptian businesses will be required to use electronic invoicing by 2022.
Read more: Payments receipt vs. invoice receipt
Regardless of the amount of a company’s contract with the government (B2G), all firms must begin utilizing e-invoicing by July 2021. Trading with public entities will be prohibited if this continues.
E-Invoicing Deadlines | When should I create an electronic invoice ?
To comply with Egypt’s e-invoicing law, all Egyptian businesses must begin submitting their invoices electronically by the end of February 2022.
Your firm may have a hard time deciding whether it’s time to expand. It doesn’t matter if you use an e-invoice for convenience or legal reasons; it will help you keep track of your money and make your firm more competitive. Additionally, using an e-invoice will increase your chances of securing new contracts and collaborations. Is there a way to get started, though?
You’ll need to decide on a format first. Following that, you’ll need a design that is compatible with the recipient’s system. For example, E-invoices in the PDF format aren’t recognized by the recipient’s system as electronic documents, making it impossible to send them. In addition, one standard may be more widely utilized in a particular industry or country than another. A list of these formats may be seen below. You may also categorize them according to their current state if desired. Electronic Bill in Egypt: Definition, Features, and Components
Complying with B2B rules is another advantage of electronic invoicing. You may verify that your partners have been paid promptly by looking over the documents they keep. It will also save you time by matching invoice numbers with the financial information of both parties. Using a web-based or cloud-based solution can also save you time. Invoices you create yourself are more authentic and reflect your individuality.
Who is exempted from e-invoicing?
The Egyptian government has stated that e-invoicing will improve VAT collection and help the economy. The measure is intended to raise income for the VAT authorities while increasing transparency and precision in the tax community. But several businesses are concerned about the impact on their operations.
Electronic invoicing is now compulsory in Egypt for all businesses. A milestone for E-Invoicing Deadlines 2022 is that this need will become required throughout the country by February 2022. A Companies who do not use electronic invoicing as part of their business processes may be subject to penalties. Firms in Egypt that don’t follow the new standards risk legal action and financial losses.