Applying E-invoicing to educational institutions in Egypt

2023-01-22

2023-01-22

The Egyptian government has recently moved to digitize the services it provides, whether to individuals or institutions, such as the application of the electronic invoice program and accordingly, companies and entities will be obliged to register their sales and purchases on the Egyptian tax authority's electronic system. Egypt aims to digitize this new system for all sectors, including the education sector and schools in Egypt, to reduce tax evasion, ensure the accuracy of economic transactions, and improve the quality of dealing between merchants and companies, in the implementation of the ambitious vision of Egypt for 2030. During this article, we will learn about what is meant by the e-invoice program, the features of the e-invoice program, and the impact of applying the e-invoice system on educational institutions in Egypt. What is e-invoicing? E-invoice is an ordinary invoice, but it is issued in digital form, which allows the exchange of invoices, debit and credit, and processing them in an organized electronic format between the seller and the buyer to ensure reliability and non-manipulation. These transactions are also reviewed and verified instantaneously by the tax authority. The e-invoicing system has several characteristics, the first of which is the presence of a unique number for each invoice, which is called the identification number and differs from the internal invoice number of the company, and there is also a unified form and content for each invoice. E-invoices include all business transactions such as: issuing a sales invoice, receiving a purchase invoice, issuing an add notification, and issuing a discount notification. The advantages of the e-invoice application within the organization Reducing tax inspection procedures Easy preparation and filing of a tax return Protecting the company from dealing with fake companies Reduce the administrative burden and reduce paperwork Facilitation and acceleration of tax responses and adjustments Ensure all data issued to your customers and coming from suppliers is valid Improve your tax position and classify your company as a low-risk company The importance of the e-invoicing system Combating tax evasion Eliminate fake invoices Secure exchange of documents and data Reduce administrative expenses Raising the technological level of companies and their employees Fair competition between traders and Prevention of tax evasion Automatic checking of sales and purchase invoices Elimination of the hidden economy and its inclusion in the official system Getting rid of paperwork and its errors, economic expenses, and accumulation of records Basic features and characteristics of e-invoicing: E-signature Instant notifications Standardization of the composition of goods and services Consolidation of invoice form and content Steps to register in the electronic invoice system in Egypt: Obtaining and activating a seal or electronic signature Registration on the website Standardization of product codes. A powerful system that is interconnected with the tax system What is the penalty for not joining the e-invoicing system? The Tax Authority explained that failure to register after December 15, 2022, will cause the application of a financial penalty starting from 20 thousand pounds to 100 thousand pounds. The fine for not dealing with the electronic invoice, confirming the identification of a black list for those who did not deal with the electronic invoice, and starting from April 1, 2023, the input tax deduction will not be taken into account and the tax will be refunded to the person only through an electronic invoice, and this is regarding VAT. The authority stressed that after April 1, 2023, importers will be able to deal only through an electronic invoice, pointing out that starting from the first of next December, no one will be able to pay financial dues except through the electronic invoice system. The impact of e-invoicing on educational institutions in Egypt According to the vision of 2030, the Egyptian government is working to bring about major developments involving all sectors in the country, and this vision has paid great attention to the education sector in order to build a promising generation with diverse cultures and based on a solid education. Dr. Khalid Abdul Ghaffar, Minister of higher education and scientific research stated that the number of public universities increased from 23 universities in 2014 to 27 universities in 2022, by 17.4%, with the addition of 4 new universities. The number of private universities has also increased from 26 universities in 2014 to 40 private universities in 2022, by 53.8%, and the number of Colleges of private universities increased from 132 in 2014 to 310 in 2022, an increase of 210%, and the number of private institutes increased from 158 in 2014 to 196 in 2022. Egypt has paid attention to all stages of education and has made many commitments towards it, and one of the most important of those commitments that contribute to the development of education and its compatibility with Vision 2030 is the following: Training about 94 thousand teachers on the use of technology in the educational process More than two million students have been tested and assessed electronically, and more than 19 million student research have been submitted electronically Supporting integration schools for the disabled and talented, as the number of beneficiaries of the training reached 1088 students from scientific projects in the exploratory centers Training and qualification of technical education teachers on the methodology of merit and involving the private sector in the development process through the establishment of Applied Technology schools Relying on safe and reliable sources, programs, and projects that enhance investment opportunities and generate job opportunities Making the student the focus of the educational process, and focusing on building his skills and creative spirit, so that he creates in a stimulating and attractive environment E-invoice for schools As the owner of a school or educational institution, you need a secure billing system that helps you document students ' financial records, and in light of the corona pandemic (covid-19), online learning has become necessary to complete the educational stage, it may be a good idea to rely on online learning programs and zoom meetings to keep abreast of global developments in the field of Education. But, how will you get your money from them? This will be done by joining the e-invoicing. Advantages for schools to apply e-invoice: Practical organization: providing an integrated electronic management that contributes to conducting periodic reports on the work. Flexibility: the student can register remotely with the provision of distinctive electronic payment methods. Easy communication: you can notify students of all the latest developments and submit the required offers and invoices online. Speed registration: there is no need for the student to wait to register, through a click of a button he can join your institution easily. Marketing and advertising: we have become in the world of digitalization so an email is enough to communicate your marketing idea to the whole world. Improving the management of statements and records: distinctive and tidy methods are presented that clarify all the necessary details for students without any randomness. You can provide professional e-invoices to your clients showing financial transactions in terms of the type of course or subscription, policy, Privacy, terms, and duties. Pioneer Solutions Company helps you start your first steps towards the digital transformation of your educational institution by providing an integrated Edu step-up school management system. The program works on organizing and managing school affairs, providing an easy environment for communication between teachers, students’ parents, and the school administration, and is easy to handle and suitable for all schools of different types. The program supports e-invoicing and is capable of linking with external systems using the application programming interface (API), and the software development fund (SDK) in order to share e-invoice data with the system. Start converting your school digitally and connect your educational institution to the e-invoicing system with the Edu step-up school management program. To request a trial version of the system and learn about all the features, please contact us! 01021990217 Connect on WhatsApp

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