- The Egyptian Tax Authority announced amendments to the VAT Law to broaden the tax base and correct market distortions.
- The construction sector will now be subject to the standard VAT rate instead of a 5% schedule tax.
- Contractors can deduct input taxes on goods and services, potentially lowering construction costs.
- Shops and administrative units in non-commercial areas remain VAT-exempt, while those in commercial areas will be taxed at 1%.
- Crude oil will be subject to a 10% schedule tax, not affecting domestic petroleum prices.
- No changes to VAT exemptions on essential goods, food, healthcare, or education, and no increase in the general VAT rate.
Source: zawya.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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