Egyptian Tax Authority applies amendments to VAT
Updated 6/29/2025 2:45:00 PM
Arab Finance: The Egyptian Tax Authority (ETA) applied amendments to the value-added tax (VAT) to expand the tax base, which will reinforce the funding of human development programs, according to a statement.
The authority indicated that these amendments will not affect the exemptions granted for food commodities, health, and education services, and will not change the general tax rate.
Contracting activities will be subject to the general tax rate, instead of a 5% schedule tax, while allowing the deduction of taxes paid on production inputs.
This could contribute to lowering contracting costs and encouraging compliance with the tax system.
Shops and administrative units in non-commercial locations will continue to be exempt from the tax, while their counterparts in malls and commercial centers will be subject to a 1% tax on the sales or rental value, to achieve equal tax treatment.
The amendments also included imposing a 10% schedule tax on crude oil, without affecting the prices of local petroleum products, given that the Egyptian General Petroleum Corporation (EGPC) is the sole purchaser and will absorb the increase within its costs.
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