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Egypt VAT on digital services foreign providers – new guidelines

August 2023 – new guidelines of VAT obligations for non-resident providers of digital services

The Egyptian Tax Authority has published English language guidelines on the VAT obligations for foreign providers of digital or electronic services. This includes Electronic Distribution Platforms facilitating marketplaces and digital platforms which render the service on behalf of foreign providers.

The guidelines cover:

  • Scope of services subject to VAT
  • Use of reverse charge for B2B transactions
  • Requirements to determine Egypt as the place of supply
  • VAT rates applicable
  • VAT registration procedures
  • Bookkeeping requirements
  • Invoicing obligations
  • Simplified returns process
  • VAT refunds for any input VAT suffered

June 2023 launch of simplified vendor VAT registration portal for non-residents

Egypt’s Tax Authority is to launch a new simplified registration process and reporting portal for foreign providers of remote digital or electronic services. This will be available from 22 June 2023.

14% VAT on electronic services to consumers

Egypt made providers liable to 14% Value Added Tax collections obligations in September 2016. This was further extended by the Finance Ministry in 2022 to non-resident providers. B2B transactions are excluded. Non-resident providers of digital services may determine if their customer is consuming their services locally by two of the following three facts:

  • Billing or postal address
  • Bank, credit card, Bank Identification Number or similar address
  • IP access address, including SIM card, mobile country code

Digital remote services

The following ‘remote’ services are considered in-scope

  • Streaming or downloaded films, TV, music
  • Games
  • Apps
  • E-books
  • Online news
  • Website design or publishing services
  • Professional legal, accounting and marketing services (10% VAT rate)

Marketplaces and similar intermediaries also share VAT obligations. This includes raising VAT invoices. The liability was extended to digital content creators in 2021.

Simplified VAT returns for digital services

This includes a VAT registration threshold of EGP 500,000 (approx. €27,400 or $31,800). However, there is no threshold in the case of professional and consultancy services.

A simplified VAT registration, without the right to deduct input VAT suffered in available. The tax office should no longer require non-resident to appoint a fiscal representative since 2020.

VAT returns under the simplified returns regime are monthly. The return is due by the end of the following month. VAT may be remitted in Egyptian pounds or US dollars. From 2024, other major currencies may be remitted. There is no facility to apply for input VAT deductions via the return. Instead, non-residents make a separate reclaim application.

Check VAT Calc’s global VAT and GST on digital services tracker to see which other states have implemented indirect taxes on electronic services to consumers.

Africa & Middle East VAT on digital services

Comments (click for details) Rate Date Threshold Comments
Algeria 9% Jan 2020 Nil
Angola 14% Oct 2019
Bahrain 10% Jan 2019 Nil
Benin 18% Oct 2023 TBC
Botswana 14% 2024 - Pending implementation
Cameroon 19.5% Jan 2020 XAF 50 million
Cape Verde 15% Jan 2022 Nil
Congo, Democratic Republic 16% Jan 2024 -
Egypt 14% Sep 2016 EGP 500,000
Ghana 12.5% Apr 2022 GHS 200,000
Israel 17% TBC Proposals withdrawn
Ivory Coast 18% 2022 -
Jordan 16% JOD 30,000
Kenya 16% Sep 2013 - Registration threshold removed 2023
Kuwait 5% Jan 2024? - TBC
Mauritius 15% 2020
Morocco 20% 2024
Mozambique 16% 2017 Nil
Nigeria 7.5% Jan 2020 $25,000
Oman 5% Apr 2021 OMR 35,000
Rwanda 18% TBC
Saudi Arabia 15% Jan 2018 Nil
Senegal 18% Apr 2024 Nil Fiscal representative required
Sierra Leone 15% Jan 2021 SLE 100,000 No non-resident rules
South Africa 15% Jun 2014 ZAR 1 million
Tanzania 18% Jul 2022 Nil Residents since Jul 2015
Tunisia 19% Jan 2020 Nil Withholding VAT; 3% Royalty Tax
Uganda 18% Jan 2020 UGX 150m
United Arab Emirates 5% Jan 2018 AED 375,000
Zimbabwe 14.5% Jan 2020 Nil
Zambia 16% Jan 2024 Fiscal Representative req'd


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