Under Egypt’s five-year strategy launched in October 2014, VAT legislation is expected to be introduced in the second half of this year as a transition from the current General Sales Tax (GST) to a full fledged Value Added Tax (VAT) System.
Our understanding is that VAT would apply in Egypt on a broader range of goods and services with significant changes to the input VAT deduction and refund principles in alignment with international standards. Moving from a GST to a VAT system will require businesses to review their VAT strategies to optimise VAT costs and adapt systems to comply with the new VAT requirements and avoid any penalties.
In this context, we would like to share with you our Paying Taxes 2015 Middle East issue where you can find more information related to the introduction of VAT in Egypt as well as more general information on recent fiscal developments in the Middle East region.
Bildquelle: Ulla Trampert / pixelio