Invoices are essential for the successful operation of any business, whether you are an individual or a corporation. In fact, in most cases, an invoice is one of the first documents that any company must generate to register their company with various legal or financial institutions. There are a few reasons why invoices are essential, and one reason happens to be that they are used as evidence in any court case. With this being said, it is no surprise that companies don’t want to generate fake invoices if they hope to get away with it. So here is what happens when a company doesn’t have an invoice in Egypt or Penalty for Non-Generation of e-invoice.

Why do invoices matter?

Virtually every company out there generates its invoices. As such, it is essential to have an invoice from your company on hand if you are ever asked to provide a document that proves the legitimacy of your business. For instance, let’s say you are in dispute with someone and want to take legal action against you. If you don’t have an invoice in Egypt, then the other side will be able to ask for one or go on your website and see that they do not exist. In this case, it will be much more difficult for them to prosecute you and win their case because they cannot prove that you are operating as a legitimate company.

Another reason why invoices are essential is that they can help save valuable time at tax time. If a company wants to claim expenses for a particular month, the best way to do so is by providing an invoice for that month. With this being said, if a company doesn’t generate invoices, it won’t be able to submit any expenses for tax purposes which means it will have limited options upon filing taxes next year.

E-invoice effect and importance in Egypt

Aside from Penalty for Non-Generation of e-invoice, E-invoice has become an essential part of a modern-day seller’s life. It is used for more than just recording sales and distributing funding after selling the product to end consumers; it allows businesses to track their expenses and provides better control over financials by giving them access through mobile phones or computers.

As e-invoicing becomes more prevalent in society, it’s essential in Egypt. The market demands increased efficiency with transactions and transparency between buyers and sellers, which can be achieved via digital platforms such as PayPal. For example, when someone pays online without going into stores like Walmart, they may feel that there is less human interaction involved even though they are paying and receiving funds electronically. This lack of connection may make some people feel uncomfortable about buying local products from small vendors who might rely on physical store presence for income generation due to creating relationships with customers face-to-face.

Read More: The Ultimate Guide For Egypt electronic invoicing

The effect of e-invoices on business in Egypt is unmistakable. It has been found that businesses are more likely to take the initiative and make their transactions electronically than with a paper invoice due to convenience and improved customer service. Moreover, the value of e-invoices in today’s culture cannot be stressed since it protects all parties involved—customers from fraudulent or inaccurate invoices, while also providing enterprises with increased efficiency. Control over their finances by controlling costs associated with printing expensive hard copies. 

Where to get the electronic invoice?

An electronic invoice is typically generated by a software program and sent electronically via email or fax to the customer. The document can be saved for future reference, which is a bonus. Another option would be using the internet to save all invoices in one central location that you have access to from anywhere with an internet connection on your computer or smart device, like your smartphone screen.

What is the penalty for not issuing an e-invoice?

According to a statement from the Egyptian Tax Authority, Reda Abdel Qader, director of the Egyptian Tax Authority, has talked about Penalty for Non-Generation of e-invoice and   urged enterprises mandated to register in Egypt’s electronic invoicing system to deliver electronic bills when they are issued on the system.

Abdel Qader reports that the authority advised businesses against delaying the submission of invoices to avoid a punishment that ranges from 20.000 to 100.000 pounds under Article 71 of the Unified Tax Procedures Law No. 206 of 2020 (2020).

To avoid the usage of middleware, the chairman of the Tax Authority has urged financial institutions to interface directly between their billing systems and the authority’s electronic billing system.

Businesses of all sizes may quickly join and integrate with the electronic invoicing system since the Tax Authority provides all the facilities and technical help they need. Via the technical support office located at the Senior Taxpayers Center or through on-site inspections.

On the authority’s official Facebook page, he noted that the authority organizes weekly free awareness workshops on the electronic bill system and that these seminars and their dates are advertised.

According to the head of Egypt’s Tax Authority, this is a crucial step toward Egypt’s Vision 2030 since it is a significant step in modernizing the tax system and raising revenue. The efficiency of a tax inspection.

This, he said, lets the state’s public treasury realize its rights in a manner that helps accomplish financial and economic objectives and allows the state to finish its growth path and enhance the quality of life and services offered to residents. He added that this.

A primary goal of the electronic invoicing was to facilitate the integration of the informal sector and build the groundwork for a more complex tax system, according to the Department of Taxes and Trade.