- Businesses in Egypt now have to remit VAT in the same foreign currency they have been paid in.
- The decision was made due to a foreign currency shortage in the treasury.
- The new rule is expected to affect companies in the tourism sector.
- Previously, companies were urged to calculate their profits in Egyptian pounds and pay VAT accordingly.
- The amendment goes against a legal opinion issued by the State Council, but it can proceed unless legal action is taken.
- The amendment will have certain effects on the tourism sector, particularly for companies making payments outside of Egypt.
- Existing restrictions on foreign currency availability and digital transactions abroad pose challenges for the tourism sector.
- Remitting VAT in foreign currency under these restrictions will make it difficult for tourism companies to settle their payments.
Source: africataxreview.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.
