Egyptian Electronic Receipt System

Definition of electronic receipt:

An electronic receipt is a digital document issued upon completion of a sale between a service provider or merchant and the end consumer, such as the receipt you get from a restaurant, café or supermarket. What is different is that a digital copy of this receipt is issued and linked to the Egyptian Tax Authority even if you continue to issue the receipt in paper form to the consumer..

The electronic receipt system platform is a processing platform that uses advanced information technology to convert the manual and paper receipt issuance process into electronic copies that are faster and more efficient in dealing with data and keeping records with the taxpayer (source) and the Authority..

 It is considered a natural extension of the electronic invoice system to cover all types and forms of electronic transactions from all parties (invoice/receipt). This system is based on establishing a system to track all commercial transactions of goods and services between financiers and consumers. This system is implemented through electronic integration with point-of-sale devices. POS And the automated accounting systems of the financier, which helps in achieving the system’s objectives and many advantages for the financier and the consumer..

Parties involved in the electronic delivery system:

Sponsor: He is the one who sells goods and services to consumers..

Egyptian Tax Authority: It is the body responsible for monitoring the receipt issuance process..

Consumer: He is the recipient of the receipt..

Benefits of electronic delivery system

It is known that converting the manual method to electronic has several benefits not only for the government, but there are some positive effects on each of the following three axes:

The government axis is represented by:

• Increase tax revenue and operational excellence.
• Achieving tax justice and governance of tax compliance.
• Improving tax services and ease of doing business.
• Achieving a comprehensive economic vision for all businesses.

Financiers axis (service providers / merchants to the final consumer):

There are many benefits for financiers from this system, including:

• Ensure digital processing of sales files.
• Automate proactive procedures to achieve automatic tax returns.
• Eliminate arbitrary assessment.
• Reduce risk and ease compliance.
• Communicate easily and smoothly with the Tax Authority.

In addition to some short-term benefits that will accrue to the financier after implementing the electronic receipt system, including:

• Strengthening the company's tax position and classifying it as a company with low tax risks
• Updating and developing the company’s method of issuing receipts
• Verify all receipt data before issuing it.
• Facilitate the company's internal and external audit procedures
• Get support and awareness by attending workshops organized by the Tax Authority.
• Help in preparing accurate reports in the fastest time and with the least effort to present them to the concerned parties

And other long-term ones are:

• Reducing administrative burden by reducing transaction costs
• Reduce inspection procedures on the company with the possibility of remote inspection
• Facilitate the process of preparing and submitting tax returns

End consumer axis:

• Consumer Rights Protection
• Maintain and commit to community engagement
• Providing digital receipts to guarantee rights in the event of any dispute
• Protecting the citizen's share of state revenues

Those obligated to implement the electronic receipt:

Electronic receipt is more concerned with commercial activities that issue receipts in their sales transactions, quick-sale sectors, and non-class companies. B2BWhere we can say that all financiers dealing with the end consumer are obligated to join the electronic receipt system, but in stages..

Therefore, companies registered with the electronic invoice, which is part of their transactions, B2C To send receipts on the electronic receipt system through integration with the system and using the APIs For electronic receipt, and transactions related to B2B It continues to be sent to the electronic invoice system, and if all the company’s transactions are B2C Receipts are sent via the electronic receipt system only.

Stages of electronic receipt, application dates and those obligated to it: 

·       Experimental phase: It is a non-mandatory stage in which the financier registers in a virtual environment in order to prepare his work systems before starting the actual registration in the actual environment..

• First stage of electronic delivery: Mandatory phase started on July 1, 2022, and it was mandatory 153 companies By issuing electronic receipts they were mentioned by the Egyptian Tax Authority.
• Phase 2 of electronic delivery: Mandatory phase started on October 1, 2022, and it was mandatory 400 companies By issuing electronic receipts, these companies have been notified by the Egyptian Tax Authority.
• Sharm El Sheikh Governorate: A mandatory phase that began on November 1, 2022, and stipulated that companies located within the geographical scope are obligated to To Sharm El Sheikh By issuing electronic receipts.
• Phase 3 of electronic delivery: Mandatory phase started on November 15, 2022, and it was mandatory 2000 companies Issuing electronic receipts and they were mentioned by the Egyptian Tax Authority.

·       Phase 4 of electronic delivery: A mandatory phase issued by Resolution No. 168 of 2023. The fourth mandatory phase consists of five sub-phases and is planned to include financiers of Greater Cairo and Alexandria governorates, according to  Dr. Mohamed Maait's decision Documented by Youm7.

• First sub-stage of the fourth stage: The first sub-phase begins on April 15, 2023 and lasts for one year. Learn about the text of the decision and the companies bound by it here The funders required to join this stage are:

§ Health sector workers (medical equipment and devices sales, hospitals, and pharmacies)

•  Tourist and non-tourist restaurant sector
• Hotels.

o      Second sub-stage of the fourth stage: The second sub-phase starts on July 15, 2023, and those required to join this phase are:

• Transportation and transfers sector ((trade of cars and vehicles of all kinds, personal transportation equipment operating services, transportation services, maintenance centers and spare parts sales))
• Education sector (schools, universities and educational centers)
•  Gold and silver jewelry sector.

o      Sub-stage 3 in stage 4: The third sub-phase starts on October 15, 2023, and those required to join this phase are:

§ Workers selling alcoholic beverages, tobacco and air conditioners. 

§ Selling clothes, fabrics and shoes.

§ Selling durable equipment.

o      Sub-stage 4 of the fourth stage: The fourth sub-phase starts on January 15, 2024, and those required to join this phase are: 

• Personal care centers.
• Personal luggage not included in the previous stages.
• Insurance company services.
• All other services not included in the previous stages.
• Trade in timber, furniture, garden tools and equipment, goods and services used in cleaning work, their maintenance centers and related activities.
• Selling mobile phones, call center services, and related subsidiary activities.

o      Sub-stage 5 in stage 4: The fifth sub-phase starts on April 15, 2024, and those required to join this phase are:

•  Sale of grains, bread, meat, fish, poultry, dairy products, cheese, etc., fruits, vegetables, sugar, other food products, beverages and related subsidiary activities.
• Cultural and recreational activities and services, sales of audio, video and photography equipment and other goods used in this activity.
• Garden and park services, selling newspapers, books, stationery, and other activities.

·       Phase 5 of electronic delivery: Its goal is to oblige the remaining financiers throughout the Republic. It begins on July 15, 2024 and is divided into 5 sub-stages, which are:

o      First sub-stage of the fifth stage: The first sub-phase starts from July 15, 2024, and those who are required to join this phase are: 

• Health sector workers (medical equipment sales, hospitals, pharmacies)
•  Tourist and non-tourist restaurant sector
• Hotels.

o      Second sub-stage of the fifth stage: The second sub-phase starts on October 15, 2024, and those required to join this phase are: 

• Transportation and transfers sector ((trade of cars and vehicles of all kinds, personal transportation equipment operating services, transportation services, maintenance centers and spare parts sales))
• Education sector (schools, universities and educational centers)

§ Gold and silver jewellery sector.

o      Sub-stage 3 of stage 5: The third sub-phase starts on January 15, 2025, and those required to join this phase are: 

• Workers selling alcoholic beverages, tobacco and air conditioners. 
• Selling clothes, fabrics and shoes.
• Selling durable appliances.

o      Sub-stage 4 in stage 5: The fourth sub-phase starts on April 15, 2025, and those required to join this phase are: 

• Personal care centers.
• Personal luggage not included in the previous stages.
• Insurance company services.
• All other services not included in the previous stages.
• Trade in timber, furniture, garden tools and equipment, goods and services used in cleaning work, their maintenance centers and related activities.
• Selling mobile phones, call center services, and related subsidiary activities.

o      Sub-stage 5 by stage 5: The fourth sub-phase starts on July 15, 2025, and those required to join this phase are: 

• Sale of grains, bread, meat, fish, poultry, dairy products, cheese, etc., fruits, vegetables, sugar, other food products, beverages and related subsidiary activities.
• Cultural and recreational activities and services, sales of audio, video and photography equipment and other goods used in this activity.
• Garden and park services, selling newspapers, books, stationery, and other activities.

 We note that the sub-stages resulting from the fourth and fifth main stages are similar and in the same sectors with the geographical difference, as the fourth stage is entirely within the scope of Greater Cairo and Alexandria, while the fifth stage includes the rest of the governorates. 

Inquiry about taxpayers obligated to provide electronic receipt

You can access this link (https://www.eta.gov.eg/ar/ereceipt-inquiry) And enter the tax registration number in the designated box and it will show you whether your company is obligated or if you are still waiting for the appropriate stage for you.

What should be done to register in the electronic receipt system?

Registration in the electronic receipt system can be done either through the tax office to which you belong, or through self-registration. The detailed steps for self-registration in the system are:

• Registering an authorized person on behalf of the company owner on the system, such as an accountant or any employee who is assigned the task of registration and dealing with the interest.
• Registering the ERP system in which you are subscribed and which is linked to the Egyptian Tax Authority.
• Registering the POS system from which electronic receipts will be issued. This system must be approved by the Egyptian Tax Authority.

What are the documents required to join the electronic receipt system?

You may submit your papers to join the electronic receipt system if you are obligated or early on a voluntary basis. In both cases, the following data and papers are required from you:

• Company tax registration number.
• Tax card photo.
• Company email and mobile number.
• Name of the company commissioner in Arabic and English.
• The commissioner's email and phone number.
• A copy of the national ID card of the commissioner.

When to register in the electronic receipt system?

There are two types of registration in the system, one is mandatory and the other is optional:

• Compulsory or mandatory registration:

It is specific to entities that have been issued a mandatory decision by the head of the Egyptian Tax Authority to register in the electronic receipt system.

• Optional registration (voluntary registration):

It is specific to companies, entities, or commercial establishments that have not been issued a mandatory decision by the Egyptian Tax Authority, but are registered in the system voluntarily.

Methods of registration in the electronic receipt system:

There are two ways through which you can register in the electronic receipt system in a secure manner, which are:

First - Manual registration through the tax center/tax office to which the taxpayer belongs:

1. Submit registration documents Through the electronic receipt system in case of registration through the tax office

A registration request in the electronic receipt system, along with the required documents for registration, is sent to the competent tax office from the company’s email.

What are the documents required for registration in the event of the sponsor’s presence?

• A copy of a valid national ID card or passport and the original for inspection.
• A photocopy of the VAT registration certificate or tax card and the original for review.
• A letter of authorization from the company to register in the electronic receipt system, showing the company’s data (company registration number, company address, company email, company telephone number).
• Data of the authorized/director responsible (admin) for the company’s electronic receipt system, including (name in Arabic and English, national ID card number – email – mobile phone number).

In the event of the presence of the agent, all the previous documents must be brought in addition to the original valid power of attorney and a copy of it.

In the event that the financier or his agent is not present, a letter of authorization approved by the bank will suffice.

After submitting the registration documents, the taxpayer receives a confirmation that he has submitted the documents after verification.

2. Creating a digital file, raising awareness and sharing information

Here, the tax office employee collects the registration requests and sends them to the Electronic Transactions Department, which creates the digital file for the taxpayer and sends an invitation to the taxpayer’s email to complete the digital file with the taxpayer’s knowledge.

3. Receive the registration invitation by email.

The commissioner/system administrator receives an email containing an invitation to register his/her digital file, then clicks on the link attached to the email to start creating the user profile.

Create a digital file for the commissioner/system administrator: by filling in all the required data such as:

• First and last name in both languages (Arabic and English).
• His email address.
• Mobile number.
• National number.
• Preferred language for communication.
• Password and confirm it again.
• Agree to the terms and conditions after reviewing them.

Here the registration process is complete and we move to the stage of preparing notifications after the login process.

4. Setting up notifications

Here comes the role of setting and choosing all the preferences related to notifications such as (communication method - periods - types of alerts), and this process is done by clicking on the sponsor’s file and then going to the notifications settings.

Second - Self-registration

If you are selected to complete the self-registration process, you must follow these steps, but first you must ensure that the following conditions are met:

• The presence of the electronic seal.
• Using Windows 10.

You can start registering on the test environment and issuing receipts on the system without any retroactive effect through the link ( https://bit.ly/3YxIiFd )

Then register on the actual environment of the system, which can be accessed through ( https://invoicing.eta.gov.eg/content/ ).

Second, the steps of the self-registration process:

1. Taxpayer Signature Screen

First, enter the taxpayer number and agree to the terms and conditions, then choose the taxpayer signature and click on Register Now.

After that, you enter the PIN and log in, and then a screen appears to enter the ID number of the certificate obtained and complete the login process.

2. Taxpayer Information Screen

By entering this data:

• Company name in both languages (Arabic - English).
• The default language for dealing with the system.
• e-mail.
• Mobile phone number.

3. Verification screen

The email confirmation code and the mobile phone number confirmation code are entered.

4. Admin Invitation Screen

To successfully invite the administrator, follow these steps:

• Enter the administrator’s data (national ID – full name – user type – email – re-enter email).
• Click on Finish and send the invitation, and the registration process is complete.

The commissioner then receives the invitation link via email, and here he must::

• Click on that link and complete the registration process by entering the personal profile data (the commissioner’s national ID number – mobile phone number).
• Enter the mobile phone OTP verification code.
• Enter your password and re-enter it to confirm.

The commissioner chooses the required subscription type from among 3 options (B2B – B2C – both together) and then the registration process is completed successfully.

 How to connect POS devices to the electronic receipt system

Points of sale require some insurance and technical checks to ensure their compliance with the electronic receipt system. When linking, a distinction is made between approved and unapproved points of sale, as unapproved points of sale must be proven to comply before starting work on them and they may be rejected. Therefore, financiers must choose approved point of sale programs from the beginning to ensure the smooth running of their business and not disrupt it or expose them to the application of some penalties.

Steps to add POS to the supplier if the POS supplier is approved:

The financier goes to log in to the system through Next link 

Then go to the Commissioners section and click on “Points of sale” Then on “Point of sale registration”.

The screen for the new POS device data will appear. 

Enter the following data: 

Branch: Enter the branch of your company that you want to link to the point of sale.

Supplier and Model: If it is an approved supplier, enter its name and the model of its approved POS device. the name: POS device name

Description: POS device description 

Active from: The date this POS device went into operation.

Active to: The end/discontinuation date for this POS device, if there is no specific end date leave the field blank.

Serial number: Enter the serial number of the POS device.

Then click on “Point of sale registration”.

Steps to add POS to the supplier in case the POS supplier is not approved:

The financier must log in to the system or create a new account through Next link 

To add an unauthorized point of sale, click on “Points of sale” Then choose  “Request a visit to the sponsor”.

Submit a visit request by filling in the following information:: 

 The branch code to be visited to check the unauthorized POS device. 

 Name of the person in charge in the branch.

Branch manager phone number.

Branch Address.

comment: Write any note you have.

Note: In the event that you repeat the visit request to the same branch, you must be notified, as all inspection requests for the same financier are often combined to be implemented in one visit..

By clicking on “Visit requests” You can view all special visit requests and their status.

To follow up on the status of the POS device

Click on “Point of sale devices” Drop down “Points of sale” On the main menu.

Find your POS devices and their status.

Click on the POS device whose details you want to view..

The details will appear, including the device status and the reason for rejection, if it was rejected.. 

Note that in case of rejection, you cannot rely on this device to issue approved POS receipts, and you must link your account to another approved device.. 

note: 

If you issue electronic receipts via a device ERPYou only have to register it once as a point of sale.. 

What is it What is the form of the electronic receipt?

The similarities between the electronic invoice and the electronic receipt are very great, and the receipt does not differ from the invoice except in the absence of the electronic signature in the case of the electronic receipt, and in the possibility of using simpler and less data in the electronic receipt than in the electronic invoice. 

What is the time limit for sending the receipt? online or  Offline?

Please note that the original sending is instant sending of the goods sold and the system does not accept any receipts after 24 hours have passed..

How to integrate if there are no points of sale and only an accounting system?

In this case, the accounting system records it as a point of sale and it is treated as  SW POS This is in the event that there is only one branch or one point of sale for the financier. However, if there is more than one point of sale and receipts are issued through a central accounting system, in this case each point of sale must be registered as POS On the system.

What is the solution if the company uses the coding system? EGS Want to send receipts, but the codes used have not yet been approved by the tax authority? 

It is used Coding type GS1 In the Code Type field, enter the Level 4 code.  “GPC

Code Brick”  In the commodity code field until the codes are approved EGS Company specific.

What is the role of iTax in operating the electronic delivery system?

The responsibility for operating the electronic delivery system lies with the operating team in E.TaxUnder this responsibility, the team provides the following services to the Authority::

System Application Operation Services

Technical support services for the Authority's employees

Services for equipping, activating, supporting, maintaining, replacing, managing and monitoring points of sale (POS)

Data Analysis Operation Services

What are the steps to follow in case of wanting to cancel a receipt or sales returns?

A return receipt is issued for the value of the receipt to be cancelled or for the value of sales returns using the UUD For the original receipt.

What are the accounting systems available in the system for sending receipts?

The system currently allows sending receipts through the following channels:

Points of sale POS By linking points of sale directly with the electronic delivery system

Accounting systems ERP By linking the company's accounting system with the electronic receipt system.

What is meant by previous TUUID ?

This is a mandatory abbreviation of the data that must be sent within the returned receipt data. It represents the unique identification number of the last returned receipt that was successfully issued from the same point of sale.

In case of integration with the system through the ERP Is it permissible to send a set of receipts/return receipts issued from more than one point of sale within one package?

- Yes, this is available if the girl used in the integration is in the ERP

- How to deal with receipts in case of offline ?

Issuing receipts to the customer does not require an Internet connection, as they can be issued to the customer in ( offline ) And to collect and send it to the system, it must be connected to the Internet within a period determined by the Authority (currently 24 hours).

-Does the receipt require an electronic signature?

No electronic signature required.

What types of electronic receipts are used?

There are two types of receipts used so far, which are::

 Sales receipt.

Return receipt.

When you implement the electronic invoice or electronic receipt system using Taknia Systems, you will enjoy several advantages that distinguish us from others:

Cost saving: No need to purchase additional POS hardware, which reduces costs.

Ease of dealing with the system: Simple design and clear user interface make dealing with the system quick and smooth.

Control and Security: Ensure safe sending of receipts and returns with close monitoring.

Flexibility of transmission: Ability to send receipts in multiple ways to suit your needs.

Work offline: The ability to work offline and then send what was recorded at once when connected.

Detailed permissions: Full control over the work system by granting detailed permissions to users.

Save transactions locally: All transactions are stored in a local database, with access at any time.

Automatic backup: Automatic backup system ensures your data is kept safe.

Comprehensive reports: Prepare detailed reports for all issued receipts.

Printing and mailing services: Ability to print receipts or send them to the customer

Central database: Ability to work on a central database from anywhere.