Egypt’s Minister of Finance Mohamed Maait has revealed that more than 100 companies are currently conducting all their transactions through the government’s electronic invoicing system.
Maait referred, in a statement on Saturday, to the Cabinet’s decision that all state agencies and companies will only deal with entities that use the government’s e-invoicing system starting from 1 July 2021.
He stressed that the government aims to strengthen governance and control the tax community more precisely, in a manner that contributes to establishing the foundations of tax justice, reducing tax evasion, integrating the informal economy into the formal sector.
Reda Abdel Kader, head of the Egyptian Tax Authority, stressed the need for companies to take the initiative to design an electronic accounting system that corresponds to the nature of each company’s activity, and the electronic invoice system at the Egyptian Tax Authority. Companies should also issue e-signature and start coding goods and services they offer according to international classifications, even if it is internal coding.
He pointed out that from July 2021, companies will find themselves unable to deal with ministries and all state authorities unless they have joined the e-invoicing system, calling on companies to quickly take procedures to join the system in order to avoid crowding.