Applying Value-Added Tax ( VAT ) in Egypt
Table of Contents
The decision of the Minister of Finance for applying VAT
As of September 8, 2016, Value-Added Tax ( VAT ) will be implemented in Egypt at a rate of 13% for 2016 and 14% for 2017
Law on the sale and mortgage of commercial shops promulgated by Law No. 11 of 1940
the Civil Code promulgated by Law No. 131 of 1948
The Law of Practicing the Accounting and Auditing Profession was promulgated by Law No. 133 of 1951
The Administrative Detention Law was promulgated by Law No. 308 of 1955
The Commercial Sales Law was promulgated by Law No. 100 of 1957
Law No. 204 of 1957 on exempting armament contracts from taxes, fees, and financial rules
the Customs Law promulgated by Law No. 66 of 1963
Law No. 92 of 1964 on tobacco smuggling
The Code of Procedure in Civil and Commercial Matters No. 13 of 1968
Law No. 49 of 1977 on the Rental and Sale of Premises and Regulating the Relationship between the Owner and the Tenant
Stamp Tax Law No. 111 of 1980
the Law of Joint Stock Companies, Limited Liability Companies, and Limited Liability Companies promulgated by Law No. 159 of 1981.
Law No. 186 of 1986 regulating customs exemptions
the Investment Guarantees and Incentives Law promulgated by Law No. 8 of 1997
The Law Regulating Tenders and Auctions promulgated by Law No. 89 of 1998
the Commercial Law promulgated by Law No. 17 of 1999
the Central Bank, Banking System, and Currency Law promulgated by Law No. 88 of 2003
the Law Regulating Electronic Signature and Establishing the Information Technology Industry Development Agency promulgated by Law No. 15 of 2004.
Value-added tax on gold bars
The Gold Billion Corporation, which specializes in gold research, markets and trading, confirmed the Ministry of Supply’s decision to classify gold bars weighing less than 100 grams of worked gold, which was published in the Official Gazette yesterday, Wednesday, and is now in effect. He expressed several concerns related to the weights of metals that will be subject to a 14% tax, especially since there are weights of ingots less than 100 grams subject to a 14% tax.
Standard value-added tax
Gold Billion pointed out that bars weighing less than 31,100 grams, which are the weights of 1 gram, 2.5 grams, 5 grams, 10 grams and 20 grams, were already subject to 14% tax, which means that there is nothing new. These weights are added to the tax treatment according to the new Resolution No. 139, which will be issued on June 21, 2023.
According to the new decision, the average value-added tax on gold bars weighing 50 and 100 grams will amount to about 10.84 pounds, and the total tax and stamps are about 11.25 pounds per gram.
Value added tax in technology companies
According to Google’s message to its customers, value-added tax will be charged on its electronic services in Egypt at a rate of 14%, as of July 1 of next year.
Egypt plans to impose value-added tax on companies that provide advertising and marketing services.
This tax will apply to companies such as “Google”, “Facebook”, “YouTube”, “Netflix” and “Tik Tok”, in addition to e-commerce platforms.
The legislation requires Egyptian institutions or customers who benefit from a service from another country to pay VAT in various forms.
This approach covers categories that are not registered for taxes in Egypt, such as people, such as Google services for website development or content services, movies, music, and subscriptions.
Some large companies such as “Google” and similar companies have been recognized, and they will be required to impose value-added tax when dealing with any person, and these companies will disclose the services they provide to Egyptian consumers, because it is a tax that falls primarily on the consumer.
We will start tracking the number of small businesses in the world over time, and information may be shared with tax authorities in other countries to identify small businesses that provide similar services.
In terms of taxes for content creators, they’re already included in income tax.