Introduction:

 

The electronic invoice system is one of the most important tax tools to achieve tax control and justice by integrating the informal economy into the formal economy. The system relies on submitting electronic invoices to prove costs and expenses when submitting tax returns and deducting and refunding value-added tax.

 

Improved text:

 

The importance of dealing with companies registered in the electronic invoice system

 

Taxpayers must only deal commercially with companies registered in the electronic invoice system. Since July 1, 2023, only electronic invoices will be considered to prove costs and expenses when submitting tax returns and deducting and refunding value-added tax.

 

Legal procedures against non-compliant companies

 

The Egyptian Tax Authority indicated that companies that do not comply with registration in the electronic invoice system will be referred to the Public Prosecution. The Authority called on taxpayers obligated to the system to quickly commit to registration and issue electronic tax invoices to avoid legal procedures.

 

Achieving tax justice and integrating the informal economy

 

The electronic invoice system is one of the most important tools for achieving tax justice and integrating the informal economy. The system enhances efforts to limit the parallel economy and integrate its activities into the formal economy, ensuring the collection of the state treasury’s dues and combating tax evasion.

 

Central digital platform for reviewing and approving invoices

 

The Egyptian Tax Authority now has a central digital platform for receiving, reviewing, approving and following up on sales and purchase invoices between companies. The platform enables determining the true volume of companies’ business and commercial transactions with entities not registered for tax. Through the instant exchange of invoice data in digital format, control over economic activity is tightened and fictitious companies are eliminated, contributing to achieving tax justice.