Currently, the Egyptian Tax Authority is identifying different models to introduce e-invoicing. In May 2019, a statement was published by the Egyptian Ministry of Finance to positively advance this process. On November 15, 2020, Egypt introduced e-invoicing in a test phase for selected, large companies. Later, the process will be extended to all VAT registered companies.
The government expects the e-Invoicing introduction to have many positive economic aspects, such as improving the VAT revenue situation. The introduction is also expected to have a positive impact on the creation of a database that will identify all commercial and taxable transactions and thus better predict likely tax revenues. In this regard, the tax authority defines what requirements must be placed on the e-Invoicing solution in the future.
The test phase now introduced is based on the Italian SdI e-Invoicing model, as the e-Invoices must contain a unique digital signature of the suppliers and a uniform code to identify the goods or services, and must be approved beforehand by the Egyptian tax authority. Egypt has now designated 134 identified companies for the test run, which must adhere to the new e-Invoicing requirements.