Regulatory updates - Egypt

The Egyptian e-receipt system was initially set to be in full effect by 2024; however, after several postponements, the roll-out is still underway. The current second stage and sixth wave of taxpayers are in the scope of the mandate and are required to issue e-receipts.

The sixth wave of taxpayers is established under Resolution No. 405/2024, which covers B2C transactions.

The taxpayers in the scope will have to integrate their point-of-sale devices or ERP systems with the central system to facilitate the validity verification of B2C transactions in real time. Furthermore, they can find more information on the obligations by providing their tax registration number on a dedicated page of the Egyptian Tax Authority’s (ETA) website.

The obligation to issue electronic tax receipts for the taxpayers in scope came into force on January 15, 2025.

On 22 June 2023, the Ministery of Finance Decree No. 160 of 2023 came into effect, introducing VAT (Value-Added Tax) on non-resident digital and remote services.

The decree affects non-resident (foreign) operators of electronic distribution platforms (EDPs) that offer remote services to Egyptian residents. Rendering a remote service now entails an obligation for VAT to be paid in Egypt.

Furthermore, the Egyptian Tax Authority (ETA) issued detailed guidelines to the decree, informing vendors and recipients of their VAT obligations.

These VAT obligations apply differently to B2B (supplying a registered taxpayer) and B2C (supplying a non-registered taxpayer) transactions:

• B2B transactions - VAT obligations follow the Reverse Charge Scheme (RCS), i.e.:
  • The Egyptian buyer is responsible for accounting for VAT;
  • The non-resident vendor does not have to charge and remit VAT but is required to request and validate the Egyptian resident’s tax registration number. The validation is done by integrating with the Egyptian Tax Authority’s API.

• B2C transactions - The obligations depend on whether the non-resident vendor supplies the service through their own portal or an EDP.

• Rendering services through its own portal obliges the vendor to register and remit VAT;
• If an EDP is used, the EDP is responsible for registering and remitting VAT.

In cases where the vendor uses their own platform or the EDP is a non-resident vendor, the vendor must remit the VAT through the simplified vendor registration regime. In the simplified registration regime, VAT registration is done online, and only basic information is required for submission to ETA.

Finally, complying with the VAT obligations is important to avoid fines or legal actions, as outlined in VAT Law No. 67 of 2016 and underlined in a statement made by the ETA on the decree.

The Ministry of Finance of Egypt announced a new e-invoice requirement for importing and exporting entities. As of 1 July 2023, all entities providing import and export of goods must be registered in the e-invoicing system.

The entities in scope must register in the e-invoicing system through the Tax Authority’s website.  This website is linked to the online portal “Nafeza”. The “Nafeza” portal will indicate only entities registered in the e-invoicing system.

After the registration in the e-invoicing system, the entities must obtain and include in e-invoices the GS1 codes for goods. For import purposes, the entities must send the acquired GS1 codes for items to the supplier who issues an e-invoice with these codes.

The online portal “Nafeza” will automatically verify the prescribed codes on the e-invoices. This verification is an approval of the completion of the customs declaration.

The created e-invoices must be uploaded to the platform CargoX.