- Egypt raised VAT on construction supply and installation contracts from 5% to 14%.
- For existing contracts with certified work orders or e-invoices before July 18, 2025, 14% VAT applies to 36% of the invoice value, with no input VAT deduction allowed.
- Subcontractors are exempt from VAT if the main contractor has already remitted it and provided certification.
- New and expanded contracts are fully subject to 14% VAT, with standard input VAT deduction rules reinstated.
- The decree clarifies tax liability, input VAT deductibility, and remittance responsibilities, ensuring a smooth transition to the new VAT regime.
Source: vatabout.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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