Value Added Tax (VAT)

A new VAT was issued on the 8th September 2016, with immediate effect, and so abolished the previously existent general sales tax law (“GST”). The new VAT law differs from the abolished GST law as it is applied to a broader range of goods and services, it however exempts a number of basic goods and services which affects low-income earners (in addition to other exemptions listed within the law). It also introduced the reverse charge mechanism in Egypt for the first time, whereby transactions involving non-residents providing services / royalties to Egyptian resident entities have become subject to VAT in Egypt. The standard VAT rate is 13% for the financial year 2016/2017 (until the 30th of June 2017), however starting from the financial year 2017/2018 (i.e. as of the 1st of July 2017), the VAT rate will increase to 14%, applicable on all goods and services, except for machinery and equipment used for production purposes, which are subject to a 5% VAT (although buses and passenger cars are subject to different tax rates).

At EIGHTPS, We strive to minimize your tax liability to improve your profitability. Whether you are a large firm or small, established business or start-up venture, we have the knowledge and experience to offer expert tax preparation services and to help you to find the best possible strategies for reducing your tax liability within the limits of the law.

We have wealth of experience and expertise to guide you through the following areas: