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Tuesday, 15 December 2020

Go online or lose your export subsidy

Looking to get export subsidies? Register on the Tax Authority’s electronic invoicing system before July, Tax Authority boss Reda Abdel Kader said, according to Al Shorouk. The move is in line with a recent cabinet decision banning local authorities from entering into contracts with parties not registered on the system by the same deadline, Abdel Kader says. That decision applies to exporters as well, Abdel Kader said, since they are required to apply for tax discounts or communicate the subsidies they’re owed through public authorities, including the Trade Ministry and tax and customs authorities. Exporters are eligible for monetary payouts and other tax incentives under the country’s export support programs.

The first trial phase of the e-invoicing system was rolled out last month with 134 companies on board. The second phase will include an additional 340, and is expected to launch in February 2021. All government affiliated bodies, meanwhile, were ordered to register as soon as possible. All B2B transactions, whether by private or public bodies, are also expected to be accounted for on the system by 30 June 2021, the ministry recently said. All tax-paying companies will be enrolled gradually until April 2023, Finance Minister Maait separately said.

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