Invoicing and Tax regulation in Egypt
Invoicing Regulation in Egypt
In Egypt, as part of their VAT regulations, invoicing is mandatory for businesses. All transactions whether b2b, b2c or b2g, must be accompanied by a detailed tax invoice. It's important to note that companies must print their tax invoices in Arabic, while they may include other languages, Arabic should be the prevalent language.
Real-time Reporting/Fiscalisation in Egypt
Strictly speaking, real-time reporting (also known as fiscalisation), is not mandatory for businesses in Egypt. It is, however, highly recommended for transparency and to ensure complete compliance with tax requirements. It is particularly relevant to businesses dealing in trade and sales (both b2b and b2c) making it crucial to maintain an accurate and updated record of their transactions.
E-Invoicing in Egypt
According to Egypt's Tax Authority, e-invoicing was introduced in 2021 and has become mandatory for certain large businesses. More businesses will be included in the mandatory e-invoicing regime in stages. The aim of this move is to transform business payment transactions into a digital framework and enhance Egypt's tax system. This regulation affects both b2b and b2g business transactions.
VAT/GST/Tax Compliance in Egypt
The standard VAT rate in Egypt is 14%. This applies to both goods and services, and all businesses must comply. In business-to-business (b2b) and business-to-government (b2g) transactions, VAT is generally applied on a reverse-charge basis. For business-to-consumer (b2c) transactions, VAT is charged at the point of sale. It is mandatory for all businesses to comply with these tax regulations and failure to do so may result in penalties.