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Egypt near VAT implementation

  • Oct 27, 2014 | Richard Asquith

Egypt near VAT implementation

Egypt has confirmed that it is closer to the publishing of a VAT implementation bill.

Consultations with the International Monetary Fund (IMF) are progressing well, and the hope is that a Bill could be introduced before the end of 2014.

Currently, Eygpt has a General Sales Tax of 10%. However, this has limited ability to reclaim input tax as goods and services move through the production chain. This means there is a high level of double taxation, and escalation of costs. This in turns disincentivises investment and may encourage black-market activity. It also means the country’s tax base is very narrow, largely dependent on corporate income and personal tax – which are both prone to volatile changes.

Last April, Egypt issued VAT implementation plans, but negotiations became bogged down over the summer.

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 won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.