- Decree No. 418 of 2025: The Minister of Finance established new accounting guidelines for VAT on contracting and construction contracts, allowing general contractors and subcontractors to collect VAT based on an approved extract or electronic invoice. For contracts concluded before the new VAT law’s enactment, VAT calculation will be based on 36% of the total invoice value. Renewals or increases in existing contracts will be treated as new contracts for tax purposes.
- Decree No. 417 of 2025: Amendments were made to the Executive Regulations of the Value Added Tax Law, redefining “indirect inputs” to include various costs related to the sale of goods and services. It outlines conditions for deducting previously paid VAT on inputs and specifies services of a continuous nature eligible for VAT exemptions, including various construction and public works.
- Implementation and Publication: Both decrees will be published in the Egyptian Chronicle and come into force the day after publication. The Egyptian Tax Authority is tasked with issuing an explanatory guide to facilitate the implementation of these new provisions.
Source egyin.com
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