Egypt VAT update
The Egyptian Parliament is reviewing implementation Bill for the introduction of VAT potentially next year.
The standard VAT rate has yet to be determined, but it is likely to be up to 15%, with a EGP 500,000 registration threshold. The compares to the current 10% General Sales Tax, which has an EGP 150,000 threshold. VAT returns will be required on a monthly basis. Foreign businesses providing taxable supplies in Egypt may be required to VAT register as a non-resident, potentially appointing a fiscal representative.
It is anticipated that education, public services, health and financial services will be exempted from the new consumption tax.