- Egypt implemented VAT regulations for non-resident providers of digital and remote services effective June 22, 2023.
- VAT applies to remote services, including digital content, software, online games, and consultancy services.
- The standard VAT rate is 14%, while professional and consultancy services are taxed at 10%.
- Non-resident providers must register if their annual revenue in Egypt exceeds EGP 500,000.
- Non-resident digital services providers must register under the Simplified Vendor Registration Regime (SVRR).
- VAT returns must be filed monthly, with payments due by the end of the following month.
- Electronic Distribution Platforms (EDPs) are considered the deemed supplier for VAT purposes if they facilitate sales between vendors and non-registered taxpayers.
- EDPs must ensure accurate invoicing and maintain records of transactions for audit purposes.
- Non-residents are not allowed to recover any VAT incurred on costs in Egypt as input tax on their monthly returns.
- The invoice/receipt must contain the service description, amount, rate and amount of VAT, invoice issuing date, the name and registration number of the non-resident supplier, and invoice/receipt number.
Source: vatabout.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.
