Egypt targets food delivery services with VAT
- Sep 1, 2021 | Avalara
The Egyptian Tax Authority is to impose Value Added Tax on domestic food delivery services.
The standard 14% VAT rate will apply to both specialist food delivery drivers and services, as well as restaurants Egypt has a VAT registration threshold of E£ 500,000 per annum. Below this amount, the service provider will continue to be VAT exempt.
In addition to the standard rate, Egypt has a reduced rate of 5% on some equipment types for businesses and non-VAT registered individuals. It also has specific reduced rates on a range of basic products – known as table taxes. This includes some key foodstuffs at 5% and drinks at 8%.
Non-residents may not VAT register directly in Egypt. They must appoint an intermediary or agent to fulfil their obligations.