ETA e-invoicing in Egypt: requirements and how it works

Egypt's e-invoicing system requires registered companies to issue business invoices electronically through the Egyptian Tax Authority (ETA). Each invoice is built in the ETA's format, signed with the company's electronic signature and submitted as it is issued. The ETA validates it and gives it a unique ID. You need portal registration, an e-signature token or e-seal, and a registered code for every item you sell.

Who must issue e-invoices

The ETA introduced e-invoicing in phases starting in 2020, adding groups of taxpayers by decision until it covered registered taxpayers generally. It applies to invoices between businesses (B2B) and to government customers. Sales to consumers are covered by a separate e-receipt system, which the ETA is also rolling out in phases, mainly for retail point-of-sale.

Whether and from when your company must join is set by the ETA's decisions for your group. Check your status on the ETA portal rather than relying on a general rule.

What you need before the first invoice

• Registration on the e-invoicing portal by the company's authorised representative, linked to the company's tax registration number and activity code.
• An electronic signature: a USB token for a named signatory, or an e-seal for automated signing, issued by a licensed certification provider.
• Item codes: every product or service you invoice needs a code, either a GS1 barcode or an internal EGS code that you register on the portal and the ETA approves.
• Customer data: the buyer's tax registration number for business customers, and the identity details the rules require for individuals above the set amount.
• A way to submit: enter invoices manually on the portal, upload them, or connect your accounting or sales system to the ETA API (for the API you also need system credentials from the portal).

How an e-invoice goes through the system

1. The invoice is built in the ETA document format: issuer, receiver, date, item lines with codes, quantities, prices, discounts and the tax type and rate for each line.
2. The document is signed with the company's electronic signature.
3. It is submitted to the ETA when it is issued.
4. The ETA checks it (format, signature, codes, registration numbers, totals) and marks it Valid or Invalid. A valid document gets a unique ID and is visible to the buyer.
5. Within a limited window after submission, the issuer can cancel it and the buyer can reject it. The ETA sets the window for each document type.
6. After that window, corrections are made with a credit note (to reduce or reverse an invoice) or a debit note (to increase it), each referring to the original invoice.

Why it matters for your VAT return

The ETA can see every valid e-invoice you issue and receive, so your VAT return is compared against them. Output tax in the return should agree with your valid issued invoices less credit notes, and input tax deductions can be refused for purchases that should have had a valid e-invoice and did not. Reconcile the two every month before you file.

Common reasons invoices are rejected

• An item code that is not registered or not yet approved on the portal.
• A wrong or missing buyer tax registration number.
• The wrong tax type or sub-type on a line, for example 14% VAT on an exempt item.
• Totals that do not add up because of rounding between line values and the invoice total.
• An expired signature certificate, or a token that is not connected when invoices are signed.
• Trying to cancel after the window has closed, when a credit note is needed instead.