Are You Sure You’re Among the Companies Required and Exempt from Electronic Invoicing in Egypt for 2025? In light of the digital transformation sweeping the country, many business owners and accountants find themselves confused about their electronic tax status. Electronic invoicing has become a fundamental element in the Egyptian tax system, but not all companies are subject to the same obligations.
In this comprehensive article, you’ll find everything you need to know about companies required and exempt from electronic taxation, how to inquire about this matter, and the best company that can provide services and consultations regarding electronic invoicing.
What Are the Companies Required and Exempt from Electronic Invoicing?
Companies required and exempt from electronic invoicing are defined according to laws and regulations established by the Egyptian Tax Authority as entities representing various commercial and administrative activities, which may or may not be subject to tax transactions. These companies are determined based on several criteria, such as company size, nature of activity, and volume of financial transactions.
Before we delve into the details of companies required and exempt from electronic invoicing, it’s important to understand that the Egyptian Tax Authority ultimately aims to include all companies and institutions within the electronic invoicing system. However, implementation has been divided into phases to allow companies time to adapt to the new system.
Companies Required to Implement Electronic Invoicing
If you’re wondering whether your company is among Companies Required and Exempt from Electronic Invoicing, here’s a list of companies obligated to implement the electronic invoicing system until 2025:
1- Large Taxpayers
This category includes major companies registered in the Tax Center for Large Taxpayers. These companies were among the first required to implement the electronic system since its launch.
2- Joint-Stock Companies
Whether public or private joint-stock companies, they are required to implement the electronic invoicing system. These companies are considered among the most important subject to the system due to their large volume of financial transactions.
3- Import and Export Companies
Due to the international nature of import and export companies’ activities, they are considered among the companies required to implement the electronic system to ensure transparency in their transactions and facilitate customs clearance processes.
4- Medium Taxpayers
Medium taxpayer companies, especially those registered in Greater Cairo and Alexandria, are an essential part of the companies required to implement the electronic invoicing system.
5- Professional Offices and Specialized Services
You may wonder about professional offices and others providing similar services, and whether they are among Companies Required and Exempt from Electronic Invoicing. The answer is that all law offices, accounting firms, consultancies, engineering firms, and other professional offices providing such services are required to implement the new invoicing system.
6- Companies Registered for Value Added Tax
Any company registered for Value Added Tax is considered among the companies required to implement the electronic system, regardless of its size or type of activity.
7- Companies Dealing with Government Agencies
If your company regularly deals with government agencies or participates in government tenders, it is among the companies that must comply with the electronic invoicing system.
8- Companies Operating on a B2B System
Among the companies subject to questions about whether they are Companies Required and Exempt from Electronic Invoicing are those operating on a B2B (Business-to-Business) system. These are required to implement the electronic system, as this helps ensure transparency in transactions between companies and facilitates the tax verification process.
Companies Exempt from Electronic Invoicing
Although the ultimate goal is to include all companies within the electronic invoicing system, some companies may be subject to exceptions. Here is a list of entities exempt from electronic invoicing until 2025:
1- Micro Enterprises
Micro enterprises with low or fixed annual revenues are temporarily exempt from implementing the system. This is due to the government’s consideration of the challenges these companies may face in implementing the new system.
2- Companies Operating on a B2C System
Companies that deal directly with the end consumer (Business-to-Consumer) rather than with other companies may be among those temporarily exempt from electronic invoicing. However, they are required to issue electronic receipts instead of electronic invoices.
3- Non-Commercial Activities
Non-profit organizations and charitable associations that do not aim for profit are subject to many questions about whether they are Companies Required and Exempt from Electronic Invoicing, but they are actually exempt from implementing the system, especially if they do not provide services or products commercially.
4- Simple Craft Businesses
Craft businesses and simple manual professions that do not rely on complex accounting systems are among the companies not required to implement this system, due to the difficulty of adapting them to the technical requirements of electronic invoicing.
5- Small Retail Shops
Small retail shops that sell directly to the end consumer are considered among the companies exempt from electronic invoicing. However, they are required to issue electronic receipts to customers.
Inquiring About Electronic Invoicing Companies
If you are unsure whether your company is among Companies Required and Exempt from Electronic Invoicing, there are several ways to inquire, which we will detail in the following lines:
First Method: The Official Website of the Egyptian Tax Authority
You can visit the official website of the Egyptian Tax Authority and inquire about your company’s status by entering your tax identification number. This method is considered the most reliable to verify your company’s status.
Second Method: Contacting the Customer Service Center
You can contact the Tax Authority’s customer service center to inquire whether your company is among tCompanies Required and Exempt from Electronic Invoicing.
Third Method: Consulting a Certified Accountant
You can consult a certified accountant or tax advisor to confirm your company’s status, as they will be able to provide accurate and up-to-date information based on current tax laws.
Mofawter Services for Electronic Invoicing
At Mofawter, we provide integrated solutions for various companies, whether they are among Companies Required and Exempt from Electronic Invoicing. Our available services include:
- Specialized consultations: Including determining whether you are among Companies Required and Exempt from Electronic Invoicing, as well as providing legal advice on requirements for joining the system.
- Registration and preparation services: Preparing the required documents for registration in the system, assistance in obtaining electronic signatures, and registering the company in the electronic invoicing system.
- Software solutions for electronic invoicing: Providing an integrated program for managing electronic invoices, support for multiple currencies and financial reports, ease of use, and a simple user interface.
- Post-implementation services: Training employees on using the system, continuous technical support to solve any technical problems, and periodic updates to the system according to new legislation.
- Customized solutions for different companies: Customized services for large and medium companies, simplified solutions for small and micro enterprises, as well as special systems for professional offices and specialized services.
With the development of the electronic invoicing system in Egypt, it has become necessary for every company to be aware of its position among companies required and exempt from electronic invoicing, as the shift towards electronic invoicing represents a positive step towards modernizing businesses and keeping pace with technological development.
At Mofawter, we are committed to helping you on this journey, from determining your position among companies required and exempt from electronic invoicing, to fully and accurately implementing the system, making you aware of the challenges you may face, and providing integrated solutions that suit your company’s needs.
Don’t let your company fall behind in digital development. Start preparing and taking advantage of the benefits of electronic invoicing. Contact us today for a free consultation about your company’s position and the steps you can take to comply with legal requirements and take advantage of available opportunities.
Frequently Asked Questions About Companies Required and Exempt from Electronic Invoicing
Can exempt companies volunteer to join the system?
Yes, companies that fall under those exempt from electronic invoicing can volunteer to join the system and benefit from its advantages by submitting an application to the Tax Authority.
What happens if the company’s size or activity changes?
If your company’s size or activity changes, its status among companies required and exempt from electronic invoicing may change. It’s important to notify the Tax Authority of any substantial changes to update your tax status.
Can a temporary exemption from implementing the system be requested?
In some exceptional cases, companies facing technical or logistical challenges can apply for a temporary exemption, even if they are among the companies required to implement this system.
Do electronic invoice programs support multiple currencies?
Yes, most electronic invoice programs available in the Egyptian market support the use of multiple currencies, making it easier for companies dealing in different currencies to issue their invoices without the need for conversion.
Are retail shops required to use electronic invoicing?
Retail shops that deal directly with the end consumer (B2C) are not required to issue electronic invoices, but they are required to issue electronic receipts. However, if they deal with other companies (B2B), they must join the new electronic invoicing system.
