Minister of Finance: Referring 5 companies that are not committed to joining the electronic invoice system to the prosecution

49

Dr. Mohamed Maait, Minister of Finance, said that 5 companies that are not committed to joining the electronic invoice system have been referred to the prosecution, according to the text of Article (72) of the Unified Tax Procedures Law No. 206 of 2020, stressing that all legal measures will continue to be taken against non-compliant companies.

Maait added, in a statement today, that the five companies that were referred to the prosecution are companies registered in the Center for Large Funders, and it was issued that they had a decision to join the first stage of the electronic invoice system and did not commit to participating, and before making the referral decision to the prosecution, they were contacted and at the same time they did not join the system. .

For his part, Reda Abdel Qader, head of the Egyptian Tax Authority, said that the authority has taken several measures to alert these companies before making the decision to refer them to the prosecution, as letters with acknowledgment of receipt were sent to alert them that in the event of non-commitment to join the system, they will be referred to the prosecution and a final warning was sent. The last date for their accession to the system is December 31, and in the event that they do not commit to joining after this date, they will be referred to the prosecution.

He added that these companies did not join the system, and therefore legal measures were taken, in accordance with the provisions of Article 72 of the Unified Tax Procedures Law, and they were transferred to the prosecution for investigation.

He explained that according to the provisions of Article 35 of the Unified Tax Procedures Law, companies and other legal persons are required to register their sales and purchases on the electronic system, as well as Article (37) of the same law, which stipulates that each taxpayer or taxpayer is obligated to issue a tax invoice or receipt in electronic form.

He stressed the necessity of joining the electronic invoice system, as from the first of next July there are many procedures and advantages associated with the electronic invoice system, and no funder will be able to undertake these procedures or benefit from these advantages unless he has already joined the electronic invoice system.

He pointed out that the funders of the Large Funders Center, whose names are listed in the issued decisions, and who have not committed to join the system, their files will be excluded from the Large Funders Center on July 1, 2021, and the condition of joining the electronic invoice system has been added to the conditions for accepting the funders’ files to the Center for Large Funders.

Abdul Qadir explained that, as of July 1, 2021, companies will find themselves unable to deal with ministries, economic authorities, public sector companies, public business sector, and all bureaus and state interests, unless they have joined the electronic invoice system, in accordance with the Cabinet’s decision that binds all management units. Local, service and economic public bodies, other public legal persons, public sector companies, public business sector companies, holding companies and their subsidiary companies, companies in which the state and other public legal persons contribute to its capital by more than 50% that sell goods or services by joining The electronic invoice system created by the Egyptian Tax Authority.

It also obligated it not to contract with any suppliers, contractors or service providers until after they are registered in the electronic invoice system, no later than the first of next July.

The head of the tax authority called on companies to quickly take procedures to join the system in order to avoid taking legal measures against them and to avoid crowding, and so that the time factor is not an obstacle that delays the process of joining the electronic invoice system or makes them unable to benefit from the advantages or impede the performance of their work.

Source: A.A.A.

The article, Minister of Finance: The referral of 5 companies that are not committed to joining the electronic invoice system to the prosecution, it was written in the Al-Borsa newspaper.