Coding in the electronic invoice

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Global Standard Product and Service Coding

This is a universal coding standard (for electronic invoicing) where each product has a unique, non-repeating code worldwide, ensuring traceability of the product to its manufacturer.

This code is obtained through a paid purchase or lease.

Consequently, an Egyptian coding system has been issued, encompassing all goods and services circulating in the Egyptian market. Coding is done online by the company, and the authority approves the codes, either individually or in batches. This system is known as EGS.

Coding goods and services using the alternative standard EGS

It is an alternative standard to the global standard in the event that international codes are not available. Here, an Egyptian standard is created that is linked to another international standard called GBC, which is affiliated with the global standard GS1.

Coding goods and services by linking to the GPC standard

It is a system that gives buyers and sellers a common language to code goods, services and products in the same way, by linking with the GS1 global classification.

Steps for coding goods and services in the electronic invoice system 

Whether coding services for the electronic invoice or coding products for the electronic invoice, it requires some steps for us to obtain the coding in the electronic invoice, and this is done through the following steps:

1. We open your company’s portal from the Egyptian Tax Authority website
2. We log in with your email and password.
3. We click on codes.
4. The following screen will appear from which you can choose between two options: (Bulk registration / Code registration)
5.  When choosing to register a code, there are two options to register a GS1 code or an EGS code as shown:If you choose to register an EGS code, the code will be registered starting with the number 622 and the item will be searched for. If it is available, it will be selected and added directly. In this case, the code will be approved immediately by the authority because it is known worldwide.
6. If a global code is not available for the item, choose to register the EGS code, then choose to register a new code in the EGS as shown:
7. This screen will appear. Fill in the required data, which is: the internal code of the item in your organization / the name of the item in Arabic / the name of the item in English / a description of the item in Arabic / a description of the item in English / active from / active to.
8. To link the internal code with the GPC global code, we go to the GPC global website, then choose services and then choose GPC Browser.
9. We search for the item we want to add in the search list and access the required code, then put the code in the GPC box on the Egyptian Tax Authority portal.
10. We place the code in the IRS portal and then click on Request Approval.

In the case of registering a group of items at once, we choose to register in bulk. The following screen will appear. We download the file and fill in the data as in the previous steps.

If the items do not have a global code (GPC), you must call 16841 or send a message to the Egyptian Tax Authority’s e-mail [email protected].

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What is the coding method adopted by the Tax Authority?

Each product has a unique identity, and therefore coding the items on the electronic invoice is essential even if there is a similarity between one product and another. However, it is impossible for there to be a similarity in weight, origin, or trademark itself. Therefore, each product has a specific code or symbol that distinguishes it, in order to facilitate transactions related to buying and selling, importing and exporting, and others. The Egyptian Tax Authority relies on two methods for coding goods and services on the electronic invoicing system:

1- The first coding method: GS1 international codes

Global spread and standardization of definition

GS1 codes are used in more than 116 countries around the world, as millions of companies agree to use a single code to identify each product. This code consists of 13 numbers starting with 622, which facilitates the process of exchanging data between companies around the world.

GS1 responsibility

GS1 does not require companies to create their own codes, but rather they are responsible for creating and issuing these codes.

Buy codes

Businesses can purchase GS1 codes through the organization’s website or through an authorized GS1 distributor.

Prices for GS1 codes vary based on the number of codes purchased. Below is a table showing the prices:

What is the GS1 GTIN code?

A GTIN code is a unique identifier generated by GS1 for your product once the fees are paid and received. No other entity can acquire this code again, as it is exclusively assigned to the purchased product. The GS1 code consists of five levels, each known as a GTIN, representing different quantity units of the product as follows:

• GTIN 1: Refers to a single box containing a number of smaller units of the product.
• GTIN 2: Represents a group of small boxes inside a carton.
• GTIN 3: Represents the product’s carton.
• GTIN 4: Symbolizes a large container holding 12 cartons of the product.
• GTIN 5: Represents the code for the smallest unit in the product, i.e., the individual product.

After obtaining the GS1 codes, it is sufficient to register them on the tax authority’s website without waiting for approval. The GS1 code is considered proprietary to the product company and is not duplicated, making it unique among different products during the electronic invoicing process.

2. The Second Coding Method: Local EGS Codes

The second method for coding in electronic invoices involves using local EGS codes. These codes consist of several components that require effort to extract. The business owner bears the cost of creating unique codes for their products. This process is a one-time occurrence for each product, and the same code can be reused when issuing electronic invoices or conducting any transactions related to that product. Codes need to be recreated when launching a new product, and obtaining tax authority approval takes approximately 15 days.

EGS codes consist of the segment “EG” followed by the company’s tax registration number, the product’s internal code (SKU), and the product’s global GPC code. The local EGS code must be linked to the global GPC code to ensure the reliability of standardized global codes. The global GPC code consists of 8 digits starting with 1000. It is followed by the EGS company and is available for free use.

Objectives of the Coding System

The coding system adopted by the tax authority aims to enhance the recovery of the commercial sector. It is difficult to conduct trade, whether traditional or digital, without a coding system that distinguishes each product, making it easier for individuals to carry out sales, purchases, imports, and exports.

Another key objective of coding is to unify conflicting codes related to the same product. For example, in the past, a supplier and a buyer might have had different coding systems, resulting in the same product being coded differently. However, with the adoption of electronic invoicing, both parties use the same code based on the standardized criteria set by the Egyptian Tax Authority.

Furthermore, the coding system aims to facilitate the addition of new products and their coding in a clear manner according to the established standards, contributing to efficient product management.

What is a GPC code?

A GPC code represents a global standard established by GS1, providing a general definition for any product without delving into country-specific or brand-related details. For instance, a single code is assigned to dairy products, while another is allocated to hairdressing services. GPC codes facilitate and streamline both domestic and international trade processes. In short, GPC stands for “Global Product Classification.” The GPC code follows several classifications, which we will explain in detail.

GPC coding is divided into 4 levels

There is a consistent sequence for classifying products in the coding in the electronic invoice according to the GPC code, which is arranged starting from the general level to the most specific, and the following is the series followed to unify the classification:

1. Segment: Such as home appliances, and is represented by the code 72000000.
2. Family: Such as major home appliances, and comes with the code 72010000.
3. Category: such as cooling and freezing devices, and is represented by the code 72010200.
4. Unit (Brick): such as a refrigerator, and is represented by the code 10003694.

This hierarchical arrangement of product classification contributes to providing a consistent classification system that facilitates interaction with products in an organized and efficient manner.

How to extract GPC codes for your products?

After examining the GPC code in the coding in the electronic invoice, it remains for us to clarify that there are two ways to extract GPC codes:

First: Using the GPC Browser

Visit the website: https://gpc-browser.gs1.org/ Select “GPC Browser”. Search for the product name or the category it belongs to. A list of available products or categories will appear. Choose the product or category you are interested in. A list of available codes will appear. Select the code that suits you.

Benefits of using the GPC Browser Easy to use. Free. Available in Arabic.

Second: Requesting GPC Codes from GS1

Visit the website. Create a new account. Log in to your account. Select “Request GPC Codes”. Enter your data and the codes you are looking for. Submit the request. You will receive the GPC codes in your email.

Benefits of Requesting GPC Codes from GS1 You can definitely get the code you are looking for. You will receive confirmation that the code you obtained is compatible with the electronic invoicing system.

What are the steps to follow on the Egyptian Tax Authority website to send product codes?

In the process of coding electronic invoices, the Egyptian Tax Authority has set certain steps for sending product codes. In these points, we review the most important of these steps:

• Prepare your product information and codes in an organized Excel file.
• Log in to your account on the Egyptian Tax Authority website and go to the “Codes” section.
• Choose between “Bulk code registration”, where you can upload an Excel file containing a group of codes, or “Register code usage” to upload the code individually.
• If you choose bulk registration, you can upload an Excel file containing up to 1000 codes.
• Then wait for approval from the Tax Authority, which comes in a status of either approved, pending, or rejected.
• If you choose to register code usage for individual codes, a window will appear where you will be asked to select the appropriate coding system (EGS or GS1) and enter the appropriate code.

The difference between EGS coding and GS1 coding

How to code in the electronic invoice? Or more precisely, what is the fundamental difference between EGC coding and GS1 coding in financial transactions?

Al-Badr for Sales: An Accounting Software Compatible with Electronic Invoices

Concluding our article about coding in electronic invoices, I am pleased to shed light on a practical solution to facilitate and improve invoice issuance and sales management. The “Al-Badr for Sales” software offers a comprehensive accounting solution fully compatible with electronic invoices, contributing to accelerating management processes and improving data accuracy.

These software solutions enable companies to benefit from features such as automatic invoice generation, inventory tracking, and providing accurate financial reports. Additionally, the software is fully compliant with the coding requirements and standards of electronic invoices, reducing the chances of human error and improving operational efficiency.

In conclusion, coding for electronic invoices represents significant progress in the field of financial and business management. Considering “Al-Badr for Sales” as a reliable and compatible option, companies can rely on this software to achieve greater efficiency and facilitate their commercial operations. Contact us now and let your business take off.