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Egypt introduces new value-added tax

At the beginning of September, Egypt introduced a value-added tax. It replaces the turnover tax that has been in effect since 1991. The new tax will come into effect on 1 October 2016.
Egypt: Sphinx sculpture and Cheops pyramid
Egypt: As of 1 October, a value-added tax takes effect.

During the current year, the value added-tax is set at a rate of 13%; this rate is planned to increase to 14% in 2017. There are 57 goods and services that are excluded from the tax. These comprise basic foodstuffs, baby foods and medical products. The government has granted companies a transitional period of three months to implement the new fiscal regulations. By introducing the value-added tax, Egypt is fulfilling an agreement with the IMF. Cairo expects additional annual revenues estimated to amount to EUR 3 billion.

Daily News Egypt: VAT implemented, starting soon

Ahram Online: Egypt’s approval of value-added tax is credit-positive

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