Egypt Launches the E-Receipt System as the Tax Authority Goes Digital
If you are in business in Egypt, you must have already heard about the launch of the obligatory e-receipt system (electronic receipts) issued by the Egyptian Tax Authority and announced by the Ministry of Finance.? The trial versions of the e-receipt system were successfully launched on April 15th, 2022, and the official rollout is slated for the 1st? of July, 2022. In what is perceived as a positive step in modernizing Egypt's tax system, the implementation of this e-receipt system will track all transactions made between vendors and customers (B2C). So, what is this new e-receipt system and what do you need to know about it?
The e-receipt system capitalizes on the success of the e-invoice system that was rolled out two years ago and is being implemented over several stages. It is one of the steps included in Egypt's national plan to revamp the Egyptian Tax Authority (ETA), enabling it to curb tax evasion and increase the resources of the state coffers from tax collections. This, of course, is contingent on the government successfully implementing the e-invoicing system that only tracks deals and transactions among companies and vendors (B2B).?
The new e-receipt project is based on a centralized electronic system, enabling the ETA to monitor transactions of exchanged goods and services among sellers and consumers in real-time (B2C). The new system will allow for the verification of transactions through electronic integration with points of sale (POS).
Prior to the pilot launch of the e-receipt system, Minister of Finance Mohamed Mait released an official statement, saying that the new e-receipt and e-invoicing systems greatly provide multiple advantages to suppliers, vendors, taxpayers, and consumers alike. The massive benefits include the facilitation of tax inspection in the least time possible, simplification of tax declaration submissions, providing vital insights to companies themselves as well as to the government in terms of overall national economic activity. Further benefits include improving the digital taxpayer experience and encouraging the informal economy into compliance with the formal one.
The e-receipt system also delivers short and long-term benefits for taxpayers. It validates the invoice and receipt items and data for both parties before issuing them, enhances a company’s taxation position by classifying it as a Low-Risk profile company, facilitates intercompany settlement procedures for VAT, updates and improves invoices and receipts exchanging methods between companies, facilitates CPA review for preparing financial statements, helps companies generate reports and the quick and accurate analysis needed for strategic decision-making while enabling fraud detection data analysis.
In recent press remarks, Head of the Administrative Affairs at the ETA Mohammed Sakr said that the e-receipt system helps the tax authority in the digital registration of commercial transactions, verifying the source, recipient, and content of bills. He added that the full implementation of the new system and its adoption by taxpayers nationwide would help integrate the informal sector into the formal economy, reducing tax evasion, enforcing tax justice, providing equal opportunities for all those operating in the Egyptian market, and collecting money due to the state.
The benefits of the e-receipt system extend to cover consumers as well. It guarantees their right to accessing quality services/goods. It also facilitates the return of damaged goods or products to the vendor and obtaining refunds, as well as serves as proof in cases that require arbitration.
To join the e-receipt system, a company should send an email to the ETA ([email protected]) pledging its commitment to join the new system and fulfill the needed requirements to get the (B2C) tag. In cases where the company is already registered in the e-invoice system, it can add the company’s representative code to the e-receipt system via the e-invoice tools. If the said company isn’t registered at the e-invoice system, it should send the following data via email to the ETA: (company’s name, tax registration number, company’s email, contact numbers, company’s representative, the representative’s ID number and email to receive an electronic invitation to join the e-receipt system and complete the registration process.
This is all you need to know about the new e-receipt system as the Egyptian government presses forward with its plans to digitize and overhaul the Tax system and implement stronger regulation measures to the informal economy. Leverage FC seamlessly integrates with the Tax platform and its ERP system making it easier for us to issue e-receipts and e-invoices to our clients and suppliers, making the tax reconciliation process automatic and seamless.
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