Egypt Implements Major VAT Reforms on Cigarettes, Alcohol, Construction, and More Effective July 2025

• Egypt issued Law No. 157 of 2025, amending VAT Law No. 67 of 2016, effective 18 July 2025
• Revised VAT obligations for goods like cigarettes and alcoholic products, and services such as contracting and construction
• Broadened tax base includes commercial trademarks, crude oil, and certain news and advertising services
• Cigarette tax revised with fixed amounts based on selling price, with annual price increase of 12% for three years
• Alcoholic beverages taxed on a fixed-amount basis, with rates based on alcohol content and annual increase of 15% for three years
• Contracting and construction services VAT rate increased from 5% to 14%
• Commercial trademarks now subject to a 10% schedule tax
• Crude oil now subject to a 10% schedule tax
• News agency services now subject to a 14% general VAT rate
• Advertisement services exemption limited to specific medical-related advertisements

Source: ey.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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