Due to the Covid crisis, the Egyptian Government has implemented legal measures to stop the spreading of the pandemic. This way, the Egyptian Finance Ministry introduced an electronic invoicing system compulsory for VAT-registered businesses in the country.
Electronic invoicing in Egypt
Egypt is one of the first countries in the Middle East to implement electronic invoicing. The purpose of the Government is to have more control over taxes and reduce the fiscal evasion at the same time.
This new measure is expected to control the Covid pandemic, as it will help minimize physical contact and respect security measures.
This way, the registered taxpayers will have to issue electronic invoices containing a digital signature of the invoice issuer and the unified code for products and services offered. All of which will have to be pre-approved by the Egyptian Tax Authority (ETA).
At the moment, the Government has not announced the details and specifications to issue electronic invoices. However, the local Tax Authority is working on the last details and the order will be enforced as soon as they publish it in the official Egyptian Gazette.
Advantages of electronic invoicing
Companies are putting an effort to automate and digitize processes during this crisis. Now more than ever, it is important to cut costs and reduce non-valuable manual and repetitive tasks through technology.
On this line, electronic invoicing provides multiple benefits, specifically to the Administration Departments, such as mitigation of errors and increase on productivity thanks to the automation of processes.
On the other hand, it also contributes to cut costs by reducing the paper and having more documentation visibility and control. In the Touristic sector, these competitive advantages are key to free the back-office departments and provide more efficiency.
In this line of work, baVel, the electronic transactions platform of Voxel Group, is specifically designed for the industry’s workflows and Hospitality sector. It provides extra benefits such as traceability, automatic reconciliation, universal compatibility with management systems and the possibility of closing the billing cycle with B2B payments.