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Egypt 13% VAT 2016

  • VAT
  • 29 August 2016 | Richard Asquith

Egypt 13% VAT 2016

Egypt will introduce Value Added Tax from October 2016 at 13%.

The new rate was voted on in Parliament today. The standard rate will rise to 14% on 1 October 2017 as part of a compromise with the government.

VAT to boost economy:

The reasons for the consumption tax reform are:
  • Existing 10% Sales Tax leads to compounding taxation on manufacturing and deters outsourcing
  • VAT shifts the tax burden from job-creating companies to consumer spending.
  • Egypt needs to match the VAT regimes of Turkey, India (GST in 2017) and China to ensure it becomes a global manufacturer
  • VAT will broaden the tax base to more services
  • The International Monetary Fund made the reform conditional on further loans to Egypt
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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.