Tax authority: obliges all financiers in the gold sector to submit an electronic invoice

Rasha Abdel-Aal Radi, assistant head of the Egyptian Tax Authority, confirmed that all financiers are obliged to apply the electronic invoice, regardless of whether they are subject to tax or not.

During her speech at the Egyptian Jewelers Forum, organized by the “i-Jewelery” company, she explained that the steps for electronic invoice registration up to the fifth phase are by the Egyptian Tax Authority, and during the sixth and seventh phases, the registration became independent , and an electronic stamp is required.

Rady added that the coding of items in the electronic invoice includes product details and codes, through two coding systems, first the “GS1” system or the international coding system, which is the most common type of coding, and notes that the Tax Authority has the coding system in the case of selling an item that is not encoded by encoding, This is the second type of encoding.

She stated that electronic invoicing regulates the movement of transactions in the business community, and Egypt is a leading country in this, as it is the first country to implement electronic invoicing in the Middle East, and great success has been achieved in this field. . .

Radi indicated that the Ministry of Finance had started studies on the experiences of previous countries with the implementation of the electronic invoicing system, to avoid the obstacles it encountered, and noted that the circulating paper invoices are being replaced with electronic invoices which are immediately Reached Egyptian Tax Authority, and the electronic invoice is a national project that holds the benefits of tax authority financiers.

She pointed out that the electronic invoicing project addresses two parts of the transactions, the first part, which is the transactions from one company to another, and the seventh stage has been reached, the other part is the transactions between the company and the final consumer. .

Fawzy: Electronic payment will revolutionize Egyptian society

In turn, Dalia Fawzy, Director-General of the Electronic Payments and Collection Unit in the Office of the Minister of Finance, said that the electronic payment process is a secure mechanism that represents an incentive for the rapid expansion of the gold sector during the coming period after digital transformation and financial inclusion.

She said that through electronic payment, merchants and companies can know their accounts first hand, through simple query processes that enable them to know all the amounts collected through the day.

Fawzi confirmed that digital transformation and financial inclusion is a global trend, and the Ministry of Finance was one of the first entities to initiate digital transformation by automating its affiliated devices.

Fawzy pointed out that the provision of electronic payment would cause a boom in Egyptian society, which is seen as insurance for the retailer within the framework of the Ministry of Finance’s objective to reduce transactions in paper currencies and the use of electronic payment cards to increase.

In turn, dr. Ahmed Shawky, a banker and member of the advisory board of the Egyptian Center for Economic Studies, said the gold trader faces some challenges in ensuring fundraising and securing, while the approach to financial inclusion is an ideal solution to meet this challenge.

She emphasized the importance of converting all parties in the system to the use of electronic payment methods, and the provision of electronic wallets to facilitate financial inclusion and digital transformation.

Fawzi pointed out that it is easy to create electronic wallets for retail companies to collect amounts and transfer amounts to and from the consumer and wholesaler, noting that there are many alternatives for companies to process transfers and collection .

In turn, Saeed Imbabi, Executive Director of the “i-Sagha” platform, said that companies working in gold have a desire for digital transformation and financial inclusion, but the high commission for transfers is one of the main obstacles facing gold traders. in this regard.

Imbabi added that the commission is calculated on the entire amount, while the trader only receives the craftsmanship, from which the commission percentage is eventually deducted, which reduces the profit margin of gold traders.

Mahrous: The gold sector could benefit from the simplified tax treatment in the Small and Medium Business Development Act

In turn, Rajab Mahrous, adviser to the head of the tax authority, said there are several ways for workers in the gold sector to calculate income tax, and the net profit is calculated by simplified accounting principles for small businesses.

He added that the income tax can be calculated using the mandatory system, or a proportional tax, and the book cases arising from the calculation of the total income, from which the total expenses are reduced and the net profit is determined.

Mahrous said that companies with a turnover of up to 10 million do not need to provide any information on expenses, and that the financier, from the 2021 financial year, has started calculating a final tax.

He pointed out that workers in the gold sector could benefit from the simplified tax treatment contained in the Medium, Small and Micro Enterprise Development Act No. 152 of 2020 and the payment of a fixed or proportional tax.

He pointed out the possibility of filing tax returns electronically through the internet, making it easier for the taxpayer to file his tax return and thus saving time and effort.

While Dr. Randa Fares, Director of the National Project for the Preservation of the Mawada Family Entity at the Ministry of Social Solidarity, said that the ministry is currently coordinating with gold traders to offer discounts to those who have received “Mawada” training.

She indicated that the initiative aims to expand and create partnerships with the private sector to generate profits for both parties, including introducing gold traders to consumers, and increasing demand as soon as young people know there are discounts. at certain merchants.

Fares explained that the initiative is aimed at addressing the high divorce rate, helping young people who are about to get married to choose a life partner on a good basis, and awareness and knowledge of the real experience of marriage.

She pointed out that the platform was launched in December 2019 and the number of members who received training exceeded about 4.4 million citizens, and at the end of the training, the apprentice receives a certificate.

Fares added that the “Mawadda” initiative addresses many topics, aimed at preserving the family entity, addressing the increase in divorce cases and helping young people find mechanisms to find solutions to problems.

She noted that the publication of an initiative is a social role, as the family is the core of society, and asks gold sector traders to spread the initiative by educating young people who are about to get married and who are going to buy gold, and that those who are going to buy and have proof of attending love courses are offered the appropriate discount.

In turn, Wahad Samir, a professor at the Higher Institute of Applied Arts and a member of the National Council for Women, said that there are many women who work in the field of gold and silver, and some of them manufacture themselves , and the council provides women in towns with records to obtain a national number card so they can join the official system.

She pointed out that women have increased their desire to manufacture jewelery, and stressed the importance of providing a database that includes all women working in the sector, to eliminate the parallel economy and their entry into the official economy. .

Wahad demanded the supply of raw materials to women by a company or institution that had the ability to pay in installments to female workers in silver or gold and gold works, after women expanded into the field of gold and handicrafts during the period of the Corona outbreak and tended to sell crafts, and companies had to specialize in transferring products from producers to consumers.

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