What is an electronic invoice?
The electronic invoice is a digital document that is issued, saved, modified and archived through an integrated electronic invoice system that links the used accounting program with the Egyptian Tax Authority to facilitate the procedures of the tax process.
This invoice includes all the elements and data of the buying and selling process found in the traditional paper invoice, and it also contains all the requirements for tax invoices. A handwritten or scanned invoice is not an electronic invoice
The importance of electronic invoices?
The new electronic invoice system that has been approved will assist in the digital transformation of commercial transactions between companies and some of them or between companies and customers.
Through the use of software solutions that facilitate the processing of invoices and facilitate the tax process without effort,
In addition to verifying the validity of transaction data, including billing data that are issued, whether sales or purchase invoices between related parties,
Verify that the invoice master data is completed, validated and secured.
Ease of processing invoices by modifying, archiving or saving them without worrying about their damage due to the safety and security procedures that characterize the system.
Proof of legal authenticity on the related parties included in the issued invoice since the data has been rigorously verified across the system.
Facilitating the process of referring to invoices for review, auditing, printing and other operations that were not possible with similar paper invoices.
Ease of preservation, storage and archiving, unlike paper counterparts, does not require physical space or dedicated safety measures against damage or loss, as various document management systems can be used to perform such operations, in addition to the possibility of retrieval at any time to perform the required processing at the time.
Facilitate the procedures for settlements between companies with regard to value added tax, which will save time and effort in this process.
Verify the validity, validity and effectiveness of the electronic signature to avoid dealing with fictitious entities
Dealing with the electronic invoice as a means of advertising and promotion for the company; By, but not limited to, including company social media links to keep the buyer in touch with the service/product provider
Increasing the percentage of customer satisfaction with the company due to its professionalism in dealing and the facilities provided by sending the invoice in a digital copy when electronic payment methods are provided with it.
What conditions must be met in the electronic invoice?
The new electronic invoicing system requires an enterprise resource planning (ERP) program to link with the tax authority database and issue invoices with specific requirements, including:
Issuing the invoice through an accounting program only and not any text editing program such as Word or Excel
The invoice should not be handwritten and scanned
Include a QR code
Include tax number (VAT registration number)
Include a description of the items included in the invoice
The electronic invoice shall be issued in Arabic and in XML format or A/PDF-3 (includes XML format)
Include a globally standardized identification number
Electronic invoice form:
The electronic invoice form includes the items and data of the buying and selling process that is made, so as to ensure that the two parties to the process confirm that these data are correct.
What is the best Free invoice software?
I personally prefer Onlineinvoices (https://www.onlineinvoices.com/) You may find it so useful:
It is much user-friendly tool.
It offers a totally free invoice generator software for freelancers.
It also offers many free features in the main package.
You may find it more relevant for freelancers.
It is cost-effective when going with the pro version.