E-commerce has become a game-changer in the way business is conducted by breaking traditional boundaries of time and space. Recognizing the importance of this sector, the Egyptian government established a resolute unit under the Egyptian Tax Authority (ETA) through Decision No. 307 of 2020 on the establishment of an e-commerce tax unit. The objectives of this unit include developing e-commerce tax policies, monitoring e-commerce activities, and providing support and guidance to taxpayers.

The definition of ‘goods’ encompasses all movable and fixed tangible assets, excluding money. Goods can be sold through e-commerce platforms that sell their own products, intermediary platforms, and social media. Meanwhile, the definition of ‘services’ encompasses all work provided to others that achieves a benefit or fulfills an interest. Services can be offered through e-commerce content services like audio, written, and visual content, as well as professional services including programming and designs.

E-commerce can be categorized based on the nature of the parties involved in the transactions. Here are the main patterns:

• Business-to-Business (B2B): This involves the electronic exchange of products, services, or information between two companies.
• Business-to-Consumer (B2C): This represents the retail aspect of e-commerce on the internet, occurring when companies sell products, services, or information directly to consumers.
• Consumer-to-Consumer (C2C): In this model, consumers exchange products, services, and information with each other over the internet.
• Consumer-to-Business (C2B): This includes consumers making their products and services available over the internet to businesses.

Furthermore, e-commerce activities cover a variety of sectors, including advertising companies, especially digital advertisements firms and their associated services, as stipulated in Article 1 of Finance Minister Decision No. 307 of 2020. Activities also include applications development companies that create applications, as well as the owners of these applications and the services they provide. Educational platforms, whether e-learning or online education, are also among the e-commerce activities, with trainers and teachers included. Additionally, influencers, YouTubers, bloggers, and, TikTokers may provide such activities. This is in addition to online pages that design websites and applications. Medical platforms are also among these activities, as they conclude contracts with pharmacies or doctors to provide consulting services through these platforms.

That is why opening a tax registration file for e-commerce with the ETA is key. Individuals engaging in any activity related to e-commerce on social media are required to open a tax file under the e-commerce activity category at their nearest tax office. There is no requirement for a specific place to practice e-commerce activity, as it can be done from home with a national ID card and a written statement indicating that the activity is being practiced from home.