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Egypt gov't submits amendments to VAT law to stimulate economy

Egypt’s government has submitted a package of amendments to the VAT law that would exempt the Suez Canal Authority’s services from the tax.
16.12.21 | Source: Ahram Online

The government, under the directives of President Abdel-Fattah El-Sisi, has made a number of amendments to the VAT law with the aim of improving the tax system, pushing the economic development process forward, and stimulating investment.

The amendments, which are being discussed in the House of Representatives, exempt goods and services in economic zone projects from the VAT in order to attract investment to these zones.

According to the amendments, in an effort to boost the tourism sector, tourists can be repaid the VAT on their purchases within three months of the purchase date if each purchase exceeds EGP 1,500.

The amendments also include applying a simple registration and collection system for the VAT on e-commerce transactions.

Moreover, the amendments also involve repaying the VAT on exported goods without exceeding the credit balance of the imported goods and services.