- Egypt enacted major VAT law amendments in July 2025, affecting tax schedules, exemptions, and especially construction and installation contracts.
- Construction and contracting services now benefit from standard VAT treatment, including eligibility for input VAT deduction.
- The reforms broaden the tax base, simplify compliance, and require companies to review contracts, pricing, and VAT processes.
- Construction activities are now taxed at 14% (up from 5%), allow broader input VAT deduction, and recognize VAT on electronic invoicing rather than advance payments.
- Transitional rules apply to contracts signed before July 18, 2025, with specific VAT calculation methods and input VAT deduction restrictions; new contracts from that date are fully eligible for standard VAT treatment.
Source: internationaltaxreview.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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