Egyptian tax regulator has recently issued a new document clarifying the VAT duties for foreign remote service providers. As stated in the Egyptian Tax Authority‘s guidelines, the new VAT regulation will come into power on June 22, 2023.
Following June 22, non-registered digital and remote service providers will have to start collecting and paying VAT. Based on the official definitions issued by the Egyptian Tax Authority, remote service is transactions that do not include selling physical goods or providing services via a physical connection. Among remote services are supplies of e-books, apps, games, website design and even legal, accounting or consulting services. Typically, it’s difficult to determine where a remote service is provided, but Egyptian Tax Authority defined that a remote service is held to be provided in Egypt whenever the buyer of the service is a taxable resident in Egypt.
Source: 1stopvat.com
