More than 100 companies in Egypt use the country’s recently launched electronic invoice (e-invoice) system, revealed Finance Minister Mohamed Maait.
In a press statement on Saturday, he said all of these companies’ transactions, including those from sales and purchases, are received on the system.
He pointed to the cabinet’s decision, which stipulates that all state agencies and companies “will only deal with financiers who have joined the e-invoice system starting from the beginning of July 2021.”
Under the decision, all ministries, state agencies, government departments, public sector companies, holdings and subsidiary public business sector companies are required to use the e-invoice system in the sale of goods and services.
Maait explained that the decision has also required all local administration units, public service and economic bodies, companies that the state and other public legal persons contribute to their capital by over 50 percent and those that sell goods or services to join the e-invoice system that was established by the Tax Authority.
It also obligated these companies not to contract with any suppliers, contractors or service providers until after they are registered in the system no later than July 2021.
According to Maait, the ministry is seeking to bolster governance and taxation in a way that ensures the right of the state, lay the foundation for just taxation, reduces tax evasion and merges the informal economy wit the formal one.
This would ultimately benefit the citizens and improve services provided to them, he added.
Head of the Tax Authority, Reda Abdul Kader, stressed the importance for companies to initiate and design an e-accounting system that is compatible with the nature of each company’s activity and with the e-invoice system.
Starting from July 2021, companies will find themselves unable to deal with ministries, bureaus and all state agencies unless they have joined the e-invoice system, Abdul Kader stressed, urging them to join the system as soon as possible.
