Decree No. 623 of 2018 of November the 12th of 2018 related to implementation of the new system that monitors the VAT collection.
This has been issued after viewing Article 53 of value-added tax law (VAT) 67/2016, and the decree of the Egyptian Minister of Finance No. 167/2017.
1) Registrants whose activities require the sale of goods or the providing services to the end user directly are obliged to collect the sold good amount or provided service amount via cash collection devices or any other electronic systems.
2) All VAT registrants are obliged to install the above mentioned devices or systems which shall allow the tax authority to obtain and access electronically details of invoices and data.
3) In addition, there should be obligation to obtain customer unified I.D. No. in case of issuing invoices with an amount more than EGP 50,000.
4) Other illustrative instructions should be followed by the tax authority
5) There will be two phases for the above implementation by starting the test phase with no harmful tax impact by the tax authority that will not exceed 6 months. Then there will be actual implementation phase.
This decree has been issued on the 12th of November 2018.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.