Wednesday 20 April 2022
Books – Mustafa Eid:
The Egyptian Tax Authority began experimentally in the middle of this month to implement the electronic receipt system, in collaboration with 100 companies participating in this stage, provided that the mandatory application of this system begins on 1 July 2022.
This comes after the application of the electronic invoicing system during several months through several stages, where the electronic receipt system is in addition to the electronic invoicing, but it relates to transactions between financiers of merchants, companies and consumers, while the electronic invoicing relates to transactions between financiers of companies and traders and some of them
In the following rules, we will monitor the most important information related to the new system, in order to familiarize the financiers with it before its actual implementation in the coming months.
What is the electronic receipt system?
The electronic receipt system is defined as a processing system that uses advanced information technology to convert the process of issuing manual and paper receipts into electronic copies that are faster and more efficient in handling data and keeping records with the financier (the source ) and the authority.
This system is considered as a natural extension of the electronic invoicing system to cover all types and forms of electronic transactions of all parties (invoice / receipt).
This system is based on the establishment of an electronic system to track and verify all commercial transactions of goods and services between financiers and consumers in real time.
This system is implemented through electronic integration between the tax authority, point of sale devices (POS) and automated accounting systems with the financier, which helps to achieve the system’s objectives and many benefits for the financier and the consumer.
The system is a clever mechanism to ensure that the taxes the consumer pays on goods and services reach the state’s public treasury in a timely manner.
The electronic receipt system will be compatible with most of the outlets of wholesalers and retailers selling to the final consumer, and the process of joining the system will be simple and inexpensive.
The Ministry of Finance has previously confirmed that the electronic receipt system does not affect the privacy of the citizen, and is not aimed at knowing the level of his consumption.
Who will implement the new system?
According to previous statements by the Ministry of Finance, the two companies, Microsoft, and the technology for operating tax solutions “E-Tax” implement the electronic receipt system at the Tax Authority.
What are the key benefits of the electronic receipt system?
Several benefits are expected from the application of the system, which are as follows:
Benefits for the economy and the state:
Contribute to the integration of the informal economy into the formal economy, the reduction of tax evasion, the establishment of the foundations of tax justice, the achievement of the principle of equal opportunities for financiers in the Egyptian market, and the collection of the fees of the state’s public treasury.
Enforcing the state’s right in the interest of the national economy, contributing to maximizing public revenue, closing the budget deficit, reducing the volume of debt, increasing spending on health and education, upgrading services that provided to citizens and the improvement of their standard of living.
Benefits for financiers:
Facilitate tax investigation procedures in the shortest possible time, terminate repeat compliance visits, examine voucher files electronically, with the possibility of remote investigation, and facilitate the process of preparing and filing tax returns as it will not be necessary to submit voucher data. in view of keeping it in a central database in the interest of taxation, which gives it legal validity.
Short-term benefits for financiers, including: strengthening the tax position of the company by classifying it among the companies with low tax risks, updating and developing its method of issuing receipts, verifying the validity of the elements and data of receipts for the traders before issuing it, and helping the company to produce accurate reports and analyzes in the fastest time and with the least hassle. To be submitted to the stakeholders and decision makers.
Benefits for consumers:
Protecting and ensuring the right of consumers to obtain good service or goods, facilitating the return of goods that do not meet specifications, the availability of certified digital receipts to guarantee rights in any dispute, and the protection of the citizen’s share of government revenue.
How can I participate in the trial operation phase of the new system?
The company sends proof of its willingness to join the trial operation phase with its commitment to complete the integration with the system on the dates specified for this phase, to the following e-mails: (email@example.com .eg) or (eReceipt. firstname.lastname@example.org).
In the event that the company is registered on the electronic invoicing system, a B2C label is added to the company, and then the company’s delegates can use the functions of the electronic receipt system.
In the event that the company is not registered in the electronic invoicing system, the following data will be sent within the email: (company name and tax registration number, company email and company phone number, the name of the company’s delegate in Arabic and English, the delegate’s national number, the delegate’s cellphone number and the delegate’s email to send the invitation to To join the system and complete the registration procedures.
The following documents will be placed in the attachments: a copy of the “recent” tax card, and a copy of the delegate’s authorization.