In its digital transformation plan, the Egyptian Tax Authority has launched an e-invoicing software project through the new system’s website and entrusted the participation of registered financiers. Start using it.
What is an electronic invoice?
An electronic invoice is a digital (electronic) document that certifies the purchase and sale of goods and services. Electronic bills have components and features that are created and signed electronically by an electronic billing system and sent and received in real-time by sponsors.
The IRS also reviews and validates electronic invoices in real time.
What does financier and representative mean?
The financier is the taxpayer and the trustee is the person responsible for registering the financier in the e-invoicing system with the tax authorities.
What is an electronic invoice? What is so special about the e-invoicing system?
A digital invoice contains proof of the purchase and sale of goods or services.
Furthermore, this invoice has specific components and a uniform form, sent and received through various electronic means, changes are made as it is processed and the data is verified in real-time through the billing system.
Data is stored and can be viewed and printed throughout the system, while invoicing is notified in real time to relevant parties, including sellers and buyers, and can be issued in Arabic or English.
Except for the possibility to change the invoice by issuing a discount or supplementary note on the invoice and the possibility to cancel and issue another invoice within the cancellation period established by law.
How to ensure that the issued invoice reaches the electronic invoice system?
The system acknowledges receipt of the invoice via email, SMS or notification via your ERP program. If the invoice is cancelled, the parties concerned will also be notified to confirm its cancellation.
Although bills can be paid in one lump sum without sending each bill individually.
Because the data of each invoice is individually checked by the system and a receipt is sent.
Plus, if your billing system goes down, you can pay your bills as soon as you get back to work.
How do you link an electronic invoicing system to your organization?
The linking process to the system is done through an electronic billing program or the company’s so-called ERP (Enterprise Resource Planning) system through an application programming interface (API) and a software development fund (SDK) provided by the company implementing the software solution for your company’s use.
Later, the e-invoicing system and the e-filing system will be linked to facilitate tax procedures and save time and effort, provided that the system is available to all parties, be it companies or individuals.
The presentation of electronic invoices will be consistent across the system, but will not change within your company because only the invoice data required by the IRS is sent from your accounting software to the system in JSON or XML format.
While the system integration process can be performed without additional licenses or hardware, all you need is the availability of billing software and customizable APIs that meet your integration technical requirements.
You can start with a brief understanding of the Dafarah program and start the linking process with the e-invoicing system, as the Dafarah program is one of the invoicing programs that can meet the requirements of the linking process.
How to ensure that the issued invoice reaches the electronic invoice system?
The system acknowledges receipt of the invoice via email, SMS or notification via your ERP program. If the invoice is cancelled, the parties concerned will also be notified to confirm its cancellation.
While there is no need to send each bill individually, bills can be sent all at once, as the system individually checks the data for each bill and sends a receipt for each bill, and can send a bill in the event of a failure of your accounting system and return to work immediately.
What is the Unified Coding System in Electronic Invoicing System?
The goods and services transactions between related parties in the electronic invoice system are carried out on the basis of global unified coding, and are divided into two categories: GS1 and GPC.
While the GS1 numbering system is the standard used to standardize the codes for goods and services that can be found in any business, as it is a unique code that does not repeat around the world and is a manufacturer’s right to their products.
The Global Commodity Bracket (GPC) is a four- league bracket system for goods and products in which a manufacturer’s product or service is classified under a specific law that describes this bracket.
In the event that your company doesn’t have the GS1 rendering system, you must make pairings between the internal canons in your company and the Global Commodity Bracket (GPC) to be suitable to use the system, and it isn’t necessary to change the internal canons for goods or services within your company, as the global bracket system will be dealt with For goods, which allows each company to keep its own internal canons with a pairing process between those internal canons and the global bracket for use in the electronic billing system.