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Egypt approves VAT bill

  • VAT
  • 16 May 2016 | Richard Asquith

Egypt approves VAT bill

The Egyptian cabinet this week approved a revised bill for the implementation of VAT and the withdrawal of the existing 10% General Sales Tax. The previous bill had been rejected by Parliament.

The latest bill will now be sent to the State Council for review, and then resubmitted to Parliament.

The introduction of a Value Added Tax regime is seen as an important fiscal reform to help encourage the development of a vibrant manufacturing economy.  Its implementation has been linked to the latest round of funding from the International Monetary Fund.

The current tax regime is complex, and often leads to compounding tax as there is no effective offset regime on sales tax incurred by businesses during the manufacturing chain. VAT should also encourage the outsourcing industry.  The new VAT system will also widen the existing tax regime.


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.