Egypt introduced its value added tax (VAT) system in 2016, replacing the previous general sales tax regime. The reform aimed to modernise Egypt’s tax structure and align with global VAT practices by applying tax throughout the supply chain.
The VAT system is governed by the Value Added Tax Law No. 67 of 2016 and its subsequent amendments, including Law No. 3 of 2022. It is administered by the Egyptian Tax Authority (ETA), operating under the Ministry of Finance. The ETA is responsible for managing VAT registrations, issuing guidance, collecting VAT, and overseeing compliance.
Businesses making taxable supplies in Egypt must meet VAT obligations, which include registration, charging the correct VAT rate, issuing compliant tax invoices, maintaining proper records, and filing regular VAT returns. Egypt’s standard VAT rate is currently 14%, with certain goods and services subject to reduced rates, zero-rating, or exemptions as specified by law.
