Friday, December 5, 2025

Egypt’s Tax Authority Demands Full Compliance with E-Invoicing Systems, Says Digital Transition is Key to Business Stability

Mona Yousef

Businesses operating in Egypt must now fully comply with the country’s mandatory electronic invoicing and receipt systems or risk being excluded from key tax benefits, warned Asha Abdel Aal, Head of the Egyptian Tax Authority (ETA), during a recent address on the nation’s digital tax transformation.

Speaking on the importance of the new regulatory framework, Abdel Aal emphasized that adherence to both the electronic invoicing (e-invoice) system for business-to-business (B2B) transactions and the electronic receipt (e-receipt) system for sales to consumers is no longer optional. These systems, she noted, are now essential for verifying expenses, filing accurate tax returns, and claiming Value Added Tax (VAT) refunds.

“The move to digital is not just a regulatory requirement—it is an opportunity for businesses to enhance financial and administrative performance, reduce risk, and promote greater transparency,” said Abdel Aal.

Non-Compliance Means No Recognition

In a firm warning to the business community, Abdel Aal clarified that any transactions not documented via the official e-invoice or e-receipt platforms will not be recognized by the Egyptian Tax Authority. These unregistered transactions will be considered non-compliant and will not be eligible for tax deductions, refunds, or inclusion in VAT filings.

This policy is being rolled out in line with implementation timelines previously announced by the ETA, and companies are urged to act swiftly if they have not yet onboarded.

Enhancing Trust and Operational Efficiency

Beyond tax reporting, Abdel Aal highlighted that the shift to digital invoicing is designed to build trust between businesses and their clients, streamline operations, and support Egypt’s broader economic reforms. She stressed that the electronic systems are not just compliance tools but part of a strategic shift to modernize Egypt’s financial infrastructure.

“It is a transformational moment. Digital tax systems help reduce administrative burdens, prevent tax evasion, and create a fairer, more transparent business environment,” she added.

Free Technical Support for Businesses

To support the transition, the ETA is offering free technical assistance and step-by-step guidance for companies that need help integrating the systems. The authority’s official website now hosts all relevant materials, including user manuals, FAQs, and implementation guides, designed to facilitate a smooth digital onboarding process.

Abdel Aal encouraged remaining non-compliant businesses to register immediately, reassuring them that the ETA is “fully prepared to assist every step of the way.”

Driving Egypt’s Digital Tax Reform Forward

The mandatory e-invoice and e-receipt systems are central pillars of Egypt’s digital tax reform strategy, which aims to increase transparency, reduce fraud, and improve public trust in state institutions. Abdel Aal concluded her remarks by stressing that broad cooperation from the private sector will be essential to the reform’s long-term success.

 

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