On 28 July 2020, the Egyptian Tax Authority (“ETA”) issued the decree no. 386 of 2020 (the “Decree”) in application of the Ministry of Finance decree no. 188 of 2020, obliging a number of companies listed under the Decree and VAT registered companies to issue e-invoices with regards to sold goods and services as of 15 November 2020.
Scope of Application and Requirements
The Decree obliges certain companies – as a first phase, one hundred thirty-four companies - to issue e-invoices with regards to sold goods and services after satisfying the requirements and technical conditions (the “Requirements”) set out in the Decree, including, inter alia, the following:
- Obtaining an e-signature certificate;
- using the “GS1”coding system or an internal coding system, which shall be connected with the “GPC” categorizing system;
- registering the company under the ETA e-invoicing system; and
- appointing and registering at the ETA a responsible person for the e-invoicing system within the company.
The Decree permits companies, which are not listed under the Decree to issue e-invoices provided they satisfy the above-mentioned Requirements.
It is worth noting that the Minister of Finance Decree no. 188 of 2020 adds that e-invoices must include the issuer’s e-signature and the unified code related to the goods or services, subject of the e-invoice, which is certified by the ETA.
Entry into Force
The Decree is effective as of 28 July 2020. The listed companies in the Decree benefit from a grace period extending to 15 November 2020 to apply the e-invoicing system.
There is no specific penalty for non-compliance with the Decree. We will follow-up on any explanatory decrees and keep you informed.