What is the e-receipt?
The Egyptian Tax Authority describes the e-receipt as an electronic document that records commercial transactions for the sale of goods and services between persons. Its aim is to capture, in digital form, the receipts circulating in the country in sales to consumers (B2C). The Authority also says the e-receipt is, in effect, the e-invoice for the retail sector: the document issued by the seller or service provider to the consumer or the person receiving the service.
The system runs on a central electronic platform that lets the Authority follow sales and service transactions between points of sale and consumers. It verifies them through electronic integration with merchants' and service providers' point-of-sale (POS) devices.
E-invoice versus e-receipt
| Point of comparison | E-invoice | E-receipt |
|---|---|---|
| Parties | Between businesses that each hold a tax registration number | From the seller or service provider to a final consumer who has a national ID and no tax registration number |
| Main connection route | The e-invoice portal and integration with it | Integration with, and registration of, POS devices |
| Mandate phases | Its own phases | 5 phases under Finance Minister Decision No. 230 of 2022 |
The Authority stresses that the e-receipt mandate phases have no relation to the e-invoice mandate phases. For more on the invoice system, see our article on the e-invoice system in Egypt.
Who must register?
Businesses with a mandate decision
Registration is required of the business (the taxpayer) that sells goods or provides services to a final consumer once a mandate decision has been issued to it, according to the dates set by the Finance Minister's decision. The Authority notes that such a business may be a retailer, a service provider, a professional, or another type of taxpayer. It has urged taxpayers who receive mandate decisions to join quickly so as not to face legal penalties.
Businesses that sell to both companies and individuals
Some businesses sell to other businesses and to final consumers at the same time. According to the Authority, such a business joins the e-invoice system under its e-invoice mandate decisions, and also joins the e-receipt system under Finance Minister Decision No. 230 of 2022.
Example: A home-appliance shop sells to individuals at the checkout and also supplies a hotel company against an invoice. Its sales to individuals fall under the e-receipt, and its sales to the company fall under the e-invoice.
Voluntary joining
A taxpayer can apply to join voluntarily. The Authority has announced simplified procedures through the tax office the taxpayer belongs to:
- Submit a voluntary joining request with a completed questionnaire form.
- Hand it to the VAT Registrant Assistance Department or the Inventory and Computer Department at the tax office.
- Attach a copy of a recent sales document, the registration certificate, the tax card, and the ID of the owner or authorised representative along with the power of attorney.
The tax office determines the nature of the taxpayer's dealings with final consumers, whether wholly or partly, before accepting the request. If the taxpayer does not deal with a final consumer, the request is rejected. The request and questionnaire can be downloaded from the Authority's page "Your guide to the e-receipt system".
Rollout phases
The Authority announced that the system is being applied gradually across the tax community. The following points could be verified from the Authority's official pages:
| Announcement | What the Authority's site states |
|---|---|
| Finance Minister Decision No. 230 of 2022 | The system is applied in 5 phases |
| Second phase | Began on 1 October 2022 |
| Decision No. 484 of 2022 | Mandate for Sharm El-Sheikh taxpayers from 1 November 2022 |
| Third phase | Began from 15 January 2023 |
We did not find, in the official pages reviewed, a detailed list of the remaining phases or of the latest activities and areas added. So do not rely on a general schedule. Check your business through the Authority's inquiry service for taxpayers with e-receipt mandate decisions, or through your tax office.
For context, the e-invoice launched on 30 June 2020, and the Authority's head later stated that its mandate phases were completed on 30 April 2023. The Authority also announced that from 1 April 2023 only e-invoices are recognised for deducting or refunding VAT and for substantiating costs and expenses in tax returns. For tax details, see VAT in Egypt.
What registration and integration involve
The Authority publishes guides for taxpayers covering registration on the system, registration of POS devices, item coding (classifying goods and services), and integration. In practice this means:
- Registering the business on the system with its tax details.
- Registering your POS devices, and the Authority provides procedures to confirm that your devices are registered.
- Coding your items, which the Authority explains in its guides.
- Technical integration: your IT team should review the technical documentation (SDK) the Authority publishes.
The Authority also announces POS suppliers whose devices meet its standards and integrate with the system, so ask your device or software vendor whether it is approved before you buy. For technical support, call the short number 16395 or write to [email protected].
How to check your position and prepare
- Define your sales: do you sell to final consumers, to businesses, or to both?
- Check your status in the inquiry service for e-receipt mandate decisions on the Authority's website.
- If you are mandated, download the registration, integration and coding guides from the Authority's page and share them with your accountant and IT contact.
- Make sure your POS device or software is registered and integrated with the system.
- Prepare item and service codes before the mandate date, not after.
- If you have no decision but deal with consumers, consider joining voluntarily through your tax office.
Why delay is a risk
Under Article 37 of the Unified Tax Procedures Law No. 206 of 2020, every taxpayer must issue a tax invoice or receipt in electronic form. The Authority's head has stated that failing to issue electronic invoices and receipts is a tax-evasion offence punishable by law. We do not quote penalty amounts here because we could not verify them on an official page, so ask the Authority or your accountant.
Summary
The e-receipt is the sales document for the final consumer. It complements the e-invoice and does not replace it. It is required of businesses that have a mandate decision under the phases of Finance Minister Decision No. 230 of 2022, and a business may join voluntarily through its tax office as long as it deals with final consumers. The best step now is to check your status officially, register your POS devices, prepare your item codes, and call the Authority on 16395 with any questions. If you are comparing software options, read how to choose accounting software for your company.