On 8 March 2021, the Egyptian Ministry of Finance published Decree No.125 of 2021 in the Official Gazette. The Decree states that from January 2022, a business will not be able to deduct a value-added tax (VAT) input tax credit on a paper tax invoice unless the tax invoice is issued by a VAT payer that is not yet required to apply e-invoicing at the time of the supply, Only e-invoices will be accepted for VAT refund or deduction purposes .
The change will take effect in nine months. However, businesses should start to monitor their compliance, as well as the compliance of their suppliers, with the e-invoicing rules to reduce the risk of losing VAT input tax credits once the new rules take effect.
Source Mostafa Arram
