Understanding VAT Refund Procedures for Foreign Companies in Egypt: Key Regulations and Requirements

• Egypt is currently engaged in multiple international projects with foreign investments.
• Foreign companies establish branches in Egypt under intergovernmental agreements and concession agreements, benefiting from specific tax incentives.
• Most tax exemptions focus on indirect taxes, particularly VAT, leading many companies to report a credit VAT balance in their tax returns.
• To refund VAT amounts, companies must adhere to the procedures outlined in VAT Law #67 Y 2016 and its Executive Regulations.
• VAT was introduced in Egypt in September 2016, replacing GST, and requires separate registration for VAT purposes.
• VAT Law #67 Y 2016 governs all VAT-related procedures, including tax imposition, documentation, collection, and refunding.
• Article 53 of Uniform Tax Procedure Law #206 Y 2020 confirms refund procedures and deadlines, including penalties for incomplete refunds.
• Following Law #3 Y 2022, VAT refunds must be processed within 45 days of application submission under specific conditions.
• Conditions for VAT refunds include: 1. Tax on exported goods/services, provided export value is transferred to a bank. 2. Tax collected by mistake. 3. Credit balance exceeding six consecutive tax periods. 4. Tax on buses and passenger cars used for licensed activities. 5. Tax paid by non-residents registered under a simplified supplier system.
• Documentation for refunds must include a certificate from a registered accountant, unless the tax payment is recorded electronically.

Source: youssrysaleh.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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