Egypt VAT update
Egypt is expected to shortly issue proposed details of its new Value Added Tax regime to replace the existing 10% Sales Tax. The new VAT system is seen as key to helping the country develop a manufacturing sector to compete with other regional emerging economies such as India and Turkey.
Potential highlights of the new indirect tax include:
- Implementation on 1 October 2016
- The tax base will be extended to most goods and services
- There will be the right for VAT registered businesses to relaim input VAT suffered domestically and on imports
- VAT rate of 10% or more