eg-bookkeeping

Egypt Record-Keeping & Bookkeeping (مسك الدفاتر والسجلات) Skill v1.0

This skill explains the books, records, and mandatory digital systems an Egyptian self-employed person, sole proprietor (منشأة فردية), or professional (صاحب مهنة حرة) must maintain. Egypt has moved aggressively to a fully digital tax ecosystem: the e-invoicing system (منظومة الفاتورة الإلكترونية) for B2B/B2G, and the e-receipt system (منظومة الإيصال الإلكتروني) for B2C. Being inside these systems is now a precondition for deducting input VAT and for deducting costs. Reply to the user in their own language (English or Arabic).

Section 1 — Quick reference & conservative defaults

Quick reference table

Field	Value
Country	Egypt (جمهورية مصر العربية)
Scope	Self-employed individuals, sole proprietors (منشأة فردية), and professionals (مهن حرة). Not large corporates, banks, or regulated sectors.
Currency	EGP (Egyptian Pound — ج.م)
Mandatory digital systems	(1) e-invoicing — منظومة الفاتورة الإلكترونية (B2B/B2G); (2) e-receipt — منظومة الإيصال الإلكتروني (B2C)
Authority	Egyptian Tax Authority — ETA (مصلحة الضرائب المصرية)
Portal	eta.gov.eg (e-invoicing: invoicing.eta.gov.eg; e-receipt: e-receipt portal under ETA)
Legal backbone	Unified Tax Procedures Law No. 206 of 2020; Income Tax Law No. 91 of 2005; VAT Law No. 67 of 2016; SME Law No. 6 of 2025
Item coding	GS1 (GTIN) or EGS (Egyptian Goods & Services) codes mapped to GPC
Digital signature	Required for e-invoices (HSM / USB token / approved cloud signing)
Record retention	5 years (per Unified Tax Procedures Law) — verify current value; some advisers cite 7 years
Quality tier	Research-verified — pending sign-off by an Egyptian accountant (محاسب قانوني)
Skill version	1.0

• Country — Egypt (جمهورية مصر العربية)
• Scope — Self-employed individuals, sole proprietors (منشأة فردية), and professionals (مهن حرة). Not large corporates, banks, or regulated sectors.
• Currency — EGP (Egyptian Pound — ج.م)
• Mandatory digital systems — (1) e-invoicing — منظومة الفاتورة الإلكترونية (B2B/B2G); (2) e-receipt — منظومة الإيصال الإلكتروني (B2C)
• Authority — Egyptian Tax Authority — ETA (مصلحة الضرائب المصرية)
• Portal — eta.gov.eg (e-invoicing: invoicing.eta.gov.eg; e-receipt: e-receipt portal under ETA)
• Legal backbone — Unified Tax Procedures Law No. 206 of 2020; Income Tax Law No. 91 of 2005; VAT Law No. 67 of 2016; SME Law No. 6 of 2025 (Unified Tax Procedures Law No. 206 of 2020; Income Tax Law No. 91 of 2005; VAT Law No. 67 of 2016; SME Law No. 6 of 2025)
• Item coding — GS1 (GTIN) or EGS (Egyptian Goods & Services) codes mapped to GPC
• Digital signature — Required for e-invoices (HSM / USB token / approved cloud signing)
• Record retention — 5 years years (verify current value; some advisers cite 7 years) (Unified Tax Procedures Law)
• Quality tier — Research-verified — pending sign-off by an Egyptian accountant (محاسب قانوني)
• Skill version — 1.0

Conservative defaults

When a fact is uncertain, the AI must take the safer, more compliant path and tell the user it is doing so:

• Assume the taxpayer is in scope. The B2C e-receipt mandate and the e-invoicing mandate have rolled out in waves and the registration threshold was lowered (reported as EGP 500,000 → EGP 250,000 of annual revenue for late 2025 / 2026). If turnover is near or above the threshold, assume the taxpayer must join. Verify the exact threshold and the taxpayer's specific phase on eta.gov.eg.
• Assume an undocumented expense is non-deductible. From the relevant phase onward, costs and input VAT not supported by a valid e-invoice / e-receipt are treated as not deductible.
• Default retention is 5 years; if in doubt keep records longer (7 years is a safe over-retention buffer some advisers recommend).
• Never invent a deadline, threshold, rate, or phase date. If you cannot confirm it, say "verify current value on eta.gov.eg or with an Egyptian accountant."

Section 2 — The e-invoicing system (منظومة الفاتورة الإلكترونية)

The e-invoicing system handles B2B and B2G transactions. A registered seller must generate a structured electronic invoice, sign it digitally, and submit it to the ETA for clearance/validation before it is a legally valid invoice.

2.1 Who must register

• Small-business exemption threshold / registration deadline — EGP 500,000 → EGP 250,000 annual revenue; registration deadline cited as 31 March 2026 EGP (cited, reported in late 2025 — verify the threshold and the taxpayer's exact registration deadline on eta.gov.eg) (eta.gov.eg)

E-invoicing rolled out in waves from 2020 and is now mandatory for essentially all VAT-registered businesses and professionals doing B2B/B2G work. Reporting in late 2025 indicates the small-business exemption threshold was lowered (cited as EGP 500,000 → EGP 250,000 annual revenue), with newly-in-scope taxpayers required to register by an early-2026 deadline (cited as 31 March 2026). Verify the threshold and the taxpayer's exact registration deadline on eta.gov.eg — these figures changed recently.

2.2 Registration steps (high level)

• Registration steps — 1. Create the ETA digital profile — register the business/professional on the ETA e-invoicing portal and set up authorised representatives. 2. Obtain a digital signature (التوقيع الإلكتروني). Egypt recognises electronic signatures with the same legal weight as handwritten ones (Unified Tax Procedures Law No. 206/2020; Digital Signature Law No. 15/2004). Get an AES certificate from an ETA-approved provider (e.g., Egypt Trust, Misr for Central Clearing). Form factors: - USB token — manual signing, suitable for very low invoice volume. - HSM (Hardware Security Module) or approved cloud signing — for automated / higher-volume issuance from an ERP. 3. Code your items. Every good or service must carry a code before it can be invoiced — see 2.3. 4. Connect. Low-volume issuers (commonly cited as under ~200 invoices) can issue directly on the ETA portal; higher volumes integrate an ERP via the ETA API. Verify the current portal-vs-API threshold. (Unified Tax Procedures Law No. 206/2020; Digital Signature Law No. 15/2004)

2.3 Item coding — GS1 (GTIN) or EGS

• Item coding schemes — Each item must be uniquely coded using one of two ETA-recognised schemes: - GS1 / GTIN — register product data on MyGS1; barcodes propagate to the ETA platform (commonly cited as within ~24 hours). - EGS (Egyptian Goods & Services code) — for items without a GS1 code; the internal code is linked to the GPC (Global Product Classification) category and submitted to the ETA for review and approval before use. Approval is not instant, so code your catalogue early.

2.4 Format & submission

• Format and submission requirements — - Invoices are submitted to the ETA in the ETA structured format (JSON or XML) conforming to the ETA schema. - B2B/B2G invoices follow a clearance model: the invoice must be validated by the ETA (effectively real-time / same-day) — an unvalidated invoice is not a valid tax invoice. - The buyer's Tax Registration Number (TRN) (or UIN for foreign entities) must be present and valid; an invalid TRN can block the buyer's VAT deduction.

2.5 Consequences of non-compliance

• Consequences of non-compliance — - No input-VAT deduction and no cost deductibility. Invoices not issued through the e-invoicing system are not accepted for VAT input credit, VAT refunds, or income-tax cost deduction. This is the single most important point for a self-employed client: an expense without a compliant e-invoice effectively costs more. - Penalties under the Unified Tax Procedures Law for failure to issue/submit electronic documents, plus reported escalating/tiered penalties for repeated late submission (introduced for 2026). Verify current penalty amounts. - Loss of access to the SME simplified regime — ETA has stated that e-invoice/e-receipt compliance is required to benefit from the simplified tax system (Law No. 6 of 2025). See Section 4.5. (Unified Tax Procedures Law; SME Law No. 6 of 2025)

Section 3 — The e-receipt system (منظومة الإيصال الإلكتروني)

The e-receipt system handles B2C sales to final consumers (retail, services to individuals). The seller issues the customer a receipt at the point of sale and transmits the receipt data to the ETA.

3.1 Rollout status (2025 → 2026)

• Rollout phases — The e-receipt mandate has expanded in phases by ETA decision: - Earlier 2025 phases brought specified groups in on 1 July 2025 (Decision 123/2025) and 15 July 2025 (Decision 225/2025). - Decision No. 281 of 2025 extended the mandate to retail/consumer transactions, with a wave from 15 September 2025, and (as reported) lowered the in-scope revenue threshold and tightened penalties for 2026. By 2026 the system is described as fully operational, with enforcement focused on bringing each remaining group into its assigned phase. A taxpayer must check the ETA website to confirm which phase applies to them. Verify the exact phase, threshold, and date for the specific taxpayer. (ETA Decisions 123/2025, 225/2025, 281/2025)

3.2 How it works

• e-receipt operational requirements — - Integrate the POS / cash register or ERP with the ETA central e-receipt system; receipts are transmitted with the seller's data and item codes. - Submission timing: sources commonly cite real-time or within ~24 hours of issuance; one source cites a 72-hour window. Verify the current permitted window on eta.gov.eg — do not promise a specific window to the client without confirming. - QR code must appear on the printed receipt linking to the validated e-receipt for consumer verification. - The same item coding (GS1 / EGS) and digital identity requirements apply as for e-invoicing.

3.3 e-invoice vs e-receipt — which applies

e-invoice vs e-receipt applicability table

Sale	System	Model
To a business or government (B2B / B2G)	e-invoice (الفاتورة الإلكترونية)	Pre-clearance / validation, structured JSON/XML, buyer TRN required
To a final consumer (B2C)	e-receipt (الإيصال الإلكتروني)	Transmit receipt data to ETA (real-time / short window), QR code on receipt

A self-employed person who serves both business clients and individual consumers will typically need both systems.

Section 4 — Books & records required

4.1 The general obligation to keep regular accounts

• General obligation to keep regular accounts — Under the Income Tax Law No. 91 of 2005 and the Unified Tax Procedures Law No. 206 of 2020, a taxpayer carrying on a commercial, industrial, or professional activity must keep regular, accurate accounts and records that allow the ETA to determine taxable profit. Keeping regular accounts is also what lets the taxpayer be taxed on actual net profit (revenue minus deductible costs) rather than on an estimated/deemed basis. (Income Tax Law No. 91 of 2005; Unified Tax Procedures Law No. 206 of 2020)

4.2 Core books and records (typical self-employed / sole proprietor set)

• Core books and records — - Cash / bank book — receipts and payments (دفتر الصندوق/البنك). - Sales / revenue register — every e-invoice and e-receipt issued. - Purchases / expenses register — every supplier e-invoice received. - Fixed-asset register — assets and depreciation, supporting capital allowances. - Inventory records — where the activity holds stock. - Wages / payroll records — if the taxpayer has employees. - Supporting documents — contracts, bank statements, supplier e-invoices, customer e-receipts, import documents. For professionals (مهن حرة) (e.g., doctors, lawyers, engineers, consultants, freelance developers), keep a fee/revenue register and an expense register that tie to issued e-invoices/e-receipts and to bank deposits.

4.3 Link to deductibility

• Link to deductibility — Costs and input VAT are deductible only if supported by valid documentation that, from the relevant mandate phase, means a compliant e-invoice / e-receipt inside the ETA systems. Cash expenses with no compliant document should be treated as non-deductible by default.

4.4 Retention period

• Record retention — 5 years years (verify current value; some advisers cite 7 years) (Unified Tax Procedures Law)

Electronic documents should be kept in their electronic form (XML/JSON plus the ETA validation and any human-readable PDF).

4.5 Simplified-regime taxpayers (SME Law No. 6 of 2025)

• Simplified regime turnover eligibility — annual turnover not exceeding EGP 20 million EGP (SME Law No. 6 of 2025, effective 1 March 2025)

Turnover-banded tax rates (reported, verify) (SME Law No. 6 of 2025 (reported, verify))

Turnover band	Rate
under EGP 500k	~0.4%
EGP 500k–2m	~0.5%
EGP 2m–3m	~0.75%
EGP 3m–10m	~1%
EGP 10m–20m	~1.5%

• Simplified regime record and filing requirements — - Taxpayers are not required to keep the full complex books of the Unified Tax Procedures Law — a simplified records system and stand-alone simplified forms apply (annual income/payroll return; quarterly VAT returns). - But e-invoicing / e-receipt compliance is still required — ETA has stated the simplified-regime benefits depend on being inside the digital systems. - The election is locked in for 5 years (cannot be withdrawn early). Even simplified-regime taxpayers should keep revenue records, expense records, bank statements, and all e-invoices/e-receipts for the 5-year retention period. (SME Law No. 6 of 2025)

Section 5 — Worked examples

Example 1 — Freelance software developer, B2B clients only

A Cairo developer invoices three Egyptian companies. System: e-invoicing (B2B). Steps: register the digital profile on the ETA portal → obtain a USB-token digital signature (low volume) → create EGS codes for "software development services" linked to GPC → issue each invoice in ETA JSON/XML with the client's valid TRN → submit for clearance. Keep all issued e-invoices and supplier e-invoices for 5 years. Without these, the developer cannot deduct input VAT on their laptop/software purchases.

Example 2 — Beauty salon selling to individuals

A salon serves walk-in consumers. System: e-receipt (B2C). Personal-care centres were brought into the e-receipt mandate during the 2025 phases. Integrate the POS with the ETA e-receipt system, code services with EGS, transmit each receipt within the permitted window, and print a QR code on the receipt. Confirm the salon's exact phase date on eta.gov.eg.

Example 3 — Consultant serving both companies and individuals

A consultant advises corporate clients (B2B) and also coaches private individuals (B2C). They need both systems: e-invoices for the company engagements and e-receipts for the individual sessions, sharing the same digital identity and item codes.

Example 4 — Small trader under the SME simplified regime

A retailer with EGP 4 million annual turnover opts into Law No. 6 of 2025 (turnover band ~1%). They keep a simplified records system rather than full double-entry books and file quarterly VAT and an annual return — but must still issue e-receipts (B2C) and any B2B e-invoices, and retain those documents for 5 years. Missing e-receipt compliance can disqualify them from the simplified-regime benefits.

Section 6 — Tier 2 escalation, references & checklist

Tier 2 — escalate / refuse and route to a human

• Escalation triggers — Hand off to a qualified Egyptian accountant (محاسب قانوني) or tax adviser when: - The taxpayer is not a self-employed individual / sole proprietor / professional (companies, partnerships, banks, regulated sectors). - There is a dispute, audit, assessment, or penalty notice from the ETA. - The taxpayer needs the exact phase date / threshold / penalty figure — these change by ETA decision and must be confirmed on eta.gov.eg. - ERP-to-ETA technical integration, HSM setup, or bulk EGS catalogue coding. - Cross-border / non-resident, withholding tax, or transfer-pricing issues.

References (verify against primary sources)

• Egyptian Tax Authority — eta.gov.eg (e-invoicing portal: invoicing.eta.gov.eg; SDK: sdk.invoicing.eta.gov.eg; e-receipt portal).
• Unified Tax Procedures Law No. 206 of 2020 (electronic documents; retention).
• Income Tax Law No. 91 of 2005 and Executive Regulations (Decree 991/2005).
• VAT Law No. 67 of 2016 and amendments (input-VAT conditions).
• SME tax incentives Law No. 6 of 2025 (simplified regime).
• ETA Decisions 123/2025, 225/2025, 281/2025 (e-receipt phases / threshold).
• GS1 Egypt (gs1eg.org) — GTIN/EGS/GPC item coding.
• PwC Worldwide Tax Summaries — Egypt; KPMG / EY / Grant Thornton tax alerts (2025–2026).

Checklist for the AI before answering

• Identified whether sales are B2B/B2G (e-invoice) or B2C (e-receipt) or both.
• Confirmed the taxpayer is in scope / which phase, or told them to verify on eta.gov.eg.
• Covered digital signature + item coding (GS1/EGS).
• Stated the input-VAT / cost-deduction precondition.
• Stated the 5-year retention (flagged as "verify"; advised longer if unsure).
• Checked whether the SME simplified regime (Law 6/2025) applies.
• Hedged every threshold/date/penalty with "verify current value".
• Replied in the user's language.

PROHIBITIONS

• Do NOT state a registration threshold, phase date, submission window, penalty amount, or retention period as settled fact without flagging it for verification — these have changed recently (e.g., threshold reportedly lowered to EGP 250,000; e-receipt window cited as both 24h and 72h; retention cited as both 5 and 7 years).
• Do NOT advise a client to deduct input VAT or costs that are not supported by a compliant e-invoice / e-receipt.
• Do NOT tell a taxpayer they are exempt from e-invoicing / e-receipt — direct them to confirm their phase on eta.gov.eg.
• Do NOT invent EGS/GS1 item codes; codes must be registered and (for EGS) ETA-approved.
• Do NOT advise corporates, partnerships, banks, or regulated entities — this skill is scoped to self-employed individuals, sole proprietors, and professionals.
• Do NOT provide a digital-signature certificate, set up an HSM, or perform ETA portal registration on the user's behalf — guide them to ETA-approved providers.
• Do NOT present this output as filed advice — it requires human sign-off.

Disclaimer

This skill is research-verified against public Egyptian Tax Authority material and reputable secondary sources (PwC, KPMG, EY, Grant Thornton, GS1 Egypt) as of May 2026, but it has not yet been signed off by a qualified Egyptian accountant (محاسب قانوني). Egypt's e-invoicing and e-receipt rules, thresholds, phase dates, penalties, and retention periods change frequently by ETA decision. Treat every figure marked "verify" as provisional and confirm it on eta.gov.eg or with a licensed Egyptian tax professional before relying on it. This is general information, not tax advice, and must be reviewed by a qualified human before filing or acting. Part of openaccountants.com — an open-source library of tax skills for AI agents serving self-employed people.