Paper Trails to Digital Rails: Egypt's Invoicing Portal for B2G, B2B and B2C

Compliance in the Land of the Nile:  Journey of e-Invoicing in Egypt

Egypt has embarked on a comprehensive digital transformation of its tax system through the introduction of mandatory e-invoicing and e-reporting requirements, spearheaded by the Egyptian Tax Authority (ETA). These mandates aim to enhance tax compliance, increase transparency, and reduce the shadow economy by digitizing all business transactions between entities and consumers. The electronic invoicing platform requires registered taxpayers to issue, sign, and transmit invoices digitally through the government’s central platform, while the e-reporting mandate extends similar obligations to smaller businesses and business-to-consumer transactions. Together, these reforms form a crucial part of the broader fiscal modernization strategy and are being implemented in phased rollouts, targeting various commercial categories and sectors across the country.

In short:  The use of electronic invoices

Egypt has implemented an e-invoicing obligation to modernize tax administration, reduce tax evasion, and enhance fiscal control in the transactional market. The Egyptian Tax Authority (ETA) requires all companies registered for VAT to issue electronic invoices for both business-to-business and business-to-consumer transactions. This mandate has a phased roll-out, targeting different groups of businesses based on the company size and the transaction volume.

Breakdown of the Phased Implementation

The implementation of Egyptian electronic invoice has been structured in a phased approach, gradually expanding its scope to ensure a smooth transition and broader compliance. Initially launched in November 2020, the first stage targeted large taxpayers registered with the Large Taxpayers Centre, requiring them to integrate with the Egyptian Tax Authority’s (ETA) e-invoicing system. Subsequent stages extended the mandate to medium and small enterprises, including companies registered with the Medium Taxpayers Centre and later the Free Professions Centre. Over time, industry-specific groups and geographical regions were also brought into the system. By April 2023, participation became mandatory for nearly all VAT-registered entities, with B2B transactions prioritized in early stages and business-to-consumer transactions gradually incorporated under the e-receipt system. For B2C transactions, the latest development took effect in January 2025, with a new group of businesses were mandated to issue e-receipts from January 15, 2025.

This tiered rollout has allowed businesses to adapt to the technical and procedural requirements of the ETA while enabling the government to monitor compliance and system efficiency progressively.

Who are the Affected Parties?

The e-invoicing requirement in Egypt applies to a wide range of parties, reflecting the government’s aim to ensure tax compliance and transparency across all economic sectors.

Initially, the mandate targeted large entities registered with the Large Taxpayers Centre, but it has since expanded to include medium and small enterprises, free professionals, public sector entities, and state-owned enterprises. All VAT-registered businesses are now obligated to issue electronic invoices for B2B, B2C, and B2G transactions.

Additionally, foreign entities operating in Egypt through a permanent establishment or engaging in taxable transactions within the country may also fall within the scope of the mandate.

The requirement extends to suppliers of goods and services, including digital service providers, who must integrate with the Egyptian Tax Authority’s e-invoicing platform to issue, sign, and transmit tax-compliant electronic invoices. Providers of both physical goods and digital services fall under the mandate. This broad application ensures the traceability and accuracy of transactions, while helping to reduce evasion and improve overall fiscal governance.

Key Requirements of the Egyptian e-invoicing mandate and Compliance Steps

1. Registration: Companies must register with the ETA’s electronic system and obtain an eSeal/ digital certificate.
2. Integration: Businesses must integrate their point-of-sale or ERP systems with the ETA’s central system for real-time transaction verification or obtain the assistance of an e-invoicing service provider.
3. Invoice Content: E-invoices must include tax identification numbers, customer details, a unique UUID code, and be electronically signed.
4. Format: Invoices must be submitted in XML or JSON format, compliant with ETA standards.

Impact of Non-Compliance

Non-compliance with the e-invoicing mandate can result in a range of administrative and financial penalties, as established by the Egyptian Tax Authority (ETA) under the executive regulations of the VAT Law and relevant ministerial decrees. Key penalties include:

1. Exclusion from government tenders – As of July 2021, companies that fail to join the e-invoicing solution may be barred from participating in public procurement processes under Law No. 182/2018.
2. Fines and penalties – Financial penalties may be imposed for failure to issue or transmit invoices electronically, for issuing non-compliant invoices, or for failing to register in the system within the deadlines.
3. Invalidity for tax deduction – Invoices that are not submitted through the ETA’s e-invoicing solution are not recognized for input VAT deduction or expense recognition for corporate income tax purposes.
4. Potential legal prosecution – In cases of deliberate tax evasion or fraudulent invoicing practices, legal action may be taken under Egypt’s tax laws, which may result in further penalties or imprisonment.

To avoid these consequences, all affected parties within the scope of the mandate must ensure timely registration, integration with the ETA platform, and full compliance with technical and procedural requirements.

Summary Table: E-Invoicing in Egypt 

In conclusion

Egypt’s e-invoicing and e-reporting mandates mark a pivotal shift toward a more transparent, efficient, and digitally driven tax ecosystem. By targeting all VAT-registered entities through a structured, period-rollout, the Egyptian Tax Authority (ETA) is reinforcing fiscal discipline while easing compliance burdens through automation and standardization. As the system becomes fully embedded across B2B, B2C, and B2G transactions, businesses must act proactively to ensure alignment with the mandate’s technical and legal requirements positioning themselves for long-term regulatory compliance and improved operational integrity.