At present, the standard rate of VAT applicable in Egypt is 10%. This rate of Sales Tax is applied when certain products and services are brought. To implement the indirect Value-Added-Tax (VAT), Egypt is shifting from General Sales Tax that applicable there at present. However, Egypt has reduced VAT rates too for certain products like tobacco, coffee, alcohol, soap, etc. Moreover, the reduced rates vary from 5% to 100%. The GSP Rates are higher are for some products, for instance, cars, beverages (alcohol), and cars. There are currently 17 products and services on which sales tax is imposed, and a VAT Taxation System is yet to take part.
In the year 2016, under VAT Law no. 67, Egypt got introduced to the Excise Tax for the first time as a Special Tax applied to certain goods and services. Excise Tax is also called Schedule Tax or Table Tax. It is applied only to some goods and services listed, such as Processed Potatoes, Professional Services, and Services related to Construction.
History of Egyptian VAT:
It is important to realize that Egypt is the Middle East’s Highest populated nation with a population of over 90 Million and beats out its closest competition Iran in population by 15 Million. Significantly, Egypt has recently made some changes to the Structure of Income Tax and Value-Added-Tax (VAT). In September of 2016, Egypt replaced Sales Tax and introduced VAT. Summary of the history of Tax Rates in Egypt is as follow:
Tax Rates
Year
10%
2010
10%
2012
10%
2014
13%
2016
14%
2018
14%
2020
Goods and Services Exempted from VAT in Egypt:
Products and Services that are either exempted from VAT or zero-rated in Egypt are:
VAT is charged in Egypt at the standard rate of 10%.
Q: What is Egypt’s primary source of income?
Egypt’s main source of income is Tourism. The revenue generated from Tourism constitutes almost 20% of Foreign-Currency Revenue annually, US $8 Billion in 2007 compared to 1995’s US $2.3 Billion.
Q: How did the Egyptians make money?
Before the 1st Millennium BC, when coinage was used, different forms of money were used by the ancient society of Egypt. Egyptians used gold and silver currency in non-coin forms such as sheep shaped gold pieces, silver rings, etc.
Q: Is it Expensive in Egypt?
Egypt is a very cheap country apart from tourist areas like Sharm. Tourists may find Egypt expensive and may find themselves paying 10-15 times more in tourist areas of Sharm than locals pay in non-tourist or local areas.
![VAT Calculator Greece 2022 [ Standard rate of Vat in Greece is 24% ]](https://vatcalculatorg.com/wp-content/uploads/2020/07/Greece-150x150.png "VAT Calculator Greece 2022 [ Standard rate of Vat in Greece is 24% ]")
Leave a Reply