Stay Compliant in Egypt with SAP Document and Reporting Compliance, Electronic Invoicing solution

Over the last few months, the SAP Globalization Service and localization team have been working diligently to release a localized version that enables SAP customers to comply with Egypt’s e-invoicing regulation.

Regulation Summary

• Egypt is implementing a solid strategy to transform its digital landscape, with numerous initiatives and changes to create a fully digital and data-driven ecosystem.
• To promote digital transformation and reduce tax evasion, The Ministry of Finance announced this initiative in March through decree Nº.188 and introduced the Electronic Invoicing System.
• The Electronic Invoicing was implemented in phases as part of the Egyptian Tax Authority (ETA) roll-out plan. It involves exchanging electronic invoices, credit notes, and debit notes.
• Egypt has adopted the mandatory clearance e-invoicing model, which states that the ETA Electronic Invoicing System must validate tax invoices to promote digital transformation and reduce tax evasion.
• Egypt has adopted the mandatory clearance e-invoicing model, which states that the ETA Electronic Invoicing System must validate tax invoices to promote digital transformation and reduce tax evasion.
• Starting from July 2023, electronic invoicing is now mandatory for all businesses in Egypt following a two-year phased implementation.

End-to-end process of Egypt Electronic Invoice in SAP Document and Reporting Compliance

• To send an e-invoice to the Egyptian Tax Authority (ETA) e-invoicing system, the issuer must submit an XML file through the eDocument Cockpit.
• The XML file is then sent through the SAP Integration Suite’s integration package to an in-house server for digital signing.
• The signed file is then forwarded to the ETA’s system for validation and clearance. If the validation is successful, the ETA’s system will notify registered taxpayers (if applicable) and the status of the e-invoice will be updated in the SAP eDocument cockpit.

Soon, new blog posts will be created to give you a better understanding of each process covered in our solution scope.

Solution References

	Implement the latest version of the Electronic Document Processing Framework. SAP S/4HANA SAP ERP
	Deploy the “SAP Document and Reporting Compliance: Electronic Invoice for Egypt” integration package in SAP Integration Suite. SAP S/4HANA and SAP ERP – Cloud Foundry Environment SAP S/4HANA Cloud – Cloud Foundry Environment
	The online help for “SAP Document and Reporting Compliance Egypt Electronic Invoicing” is published in SAP application help for country/region versions. SAP S/4HANA SAP ERP 618 SAP ERP 617
	SAP S/4HANA 2023 and SAP S/4HANA Cloud 2302 The minimum SP levels for other S/4HANA and SAP ERP releases SAP S/4HANA 1709 SAP_BASIS 752, SAPK-75213INSAPBASIS EHP6 FOR SAP ERP 6.0 SAP_APPL 606. SAPKH60632 EHP7 FOR SAP ERP 6.0 SAP_APPL 617, SAPKH60627 EHP8 FOR SAP ERP 6.0 SAP_APPL 618, SAPKH60621

Master SAP Note 3289354 SAP Document and Reporting Compliance Egypt e-Invoicing

Implementing SAP Document and Reporting Compliance has numerous benefits.

• Risk reduction: SAP Document and Reporting Compliance helps organizations mitigate risk by ensuring that regulatory compliance requirements are fulfilled and information is accurate in electronic documents and statutory reports.
• Increased efficiency: With SAP Document and Reporting Compliance, businesses can streamline document management processes and reduce the time and effort required for compliance reporting.
• Better decision-making: By providing accurate and timely data, SAP Document and Reporting Compliance enables organizations to make more informed decisions.
• Improved audit readiness: SAP Document and Reporting Compliance helps businesses prepare for audits by providing an easy-to-use platform for electronic document and statutory reports processing.
• Enhanced visibility: With real-time monitoring and reporting, SAP Document and Reporting Compliance provides greater visibility into business operations and compliance status.
• Reduced costs: By automating compliance processes, SAP Document and Reporting Compliance reduces the need for manual efforts, eliminating potential errors while driving down related costs.
• Competitive advantage: SAP Document and Reporting Compliance enables businesses to focus on their core competencies by removing compliance-related concerns, freeing up resources to invest in innovation and growth.