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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.

Egypt VAT news

Avalara Author
Avalara Author Avalara
Avalara helps businesses of all sizes get tax compliance right. In partnership with leading ERP, accounting, ecommerce, and other financial management system providers, Avalara delivers cloud-based compliance solutions for various transaction taxes, including sales and use, VAT, excise, communications, and other indirect tax types. Headquartered in Seattle, Avalara has offices across the U.S. and around the world in the U.K., Belgium, Brazil, and India.
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