- Companies in Egypt must now pay the government in foreign currency for the value added tax (VAT) they owe on goods and services sold in the same foreign currency.
- The new requirement aims to keep as much foreign currency as possible in the formal economy.
- Companies have the option to make a foreign currency deposit in a government bank to pay the VAT in Egyptian pounds.
- The export sector is exempt from VAT and will not be affected.
- The new rules could impact companies in the tourism sector, as they may struggle to have enough foreign currency to make payments.
- The government wants to receive as many payments in foreign currency as possible to guarantee state revenues.
- The decision aims to divert foreign currency from the parallel market, where exchange rates are higher.
Source: madamasr.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
