In other news out of the Ministry of Finance, Mohamed Maait announced the trial phase of the electronic invoicing system, which is scheduled to begin its actual implementation by March 2022.
Who is affected🤷: There are about 100 companies that will participate in the trial phase, including Carrefour, Kia, & Awlad Ragab. In the six-month trial period, the participants will have to record all transactions through an electronic system in real-time. Maait said this project will take years to include all shops, merchants & service providers, and estimates that by April 2023, all taxpayers will be operating under the electronic invoicing system.
Why is this important🤔: The electronic system serves to modernize and automate the tax & customs systems, which contributes to the localization of modern technology, stimulating investment, reducing the size of the informal economy, & decreasing tax evasion. All while maximizing public revenues, improving the financial capabilities of the state. The ministry estimates the electronic system to double the state’s tax revenues, from EGP 1 trillion to EGP 2 trillion.
