Egypt Lowers Medical Device VAT to 5% in Tax Law Amendments

Egypt’s parliament approved amendments to the VAT law, including a cut in the tax on medical devices to 5% from 14%.
Kidney dialysis machines and related inputs, parts, and equipment are now fully exempt from VAT.
The law also removes VAT on services performed on transit goods and extends VAT suspension on machinery/equipment to four years.
Refund rules were eased, with tax credit refunds available after four months, or three months for smaller eligible businesses.
The changes are part of broader tax reform efforts aimed at transparency, tax justice, and budget balance.

Egypt’s parliament approves VAT law amendments, cuts medical device tax to 5%

Egypt’s House of Representatives approved amendments to the VAT law, significantly reducing the tax on medical devices to 5% and subjecting natural gas to a new schedule tax of EGP 20 per thousand cubic feet.
The amendments aim to support the health sector, facilitate transit trade, and stimulate domestic production by exempting kidney dialysis machine inputs, extending VAT payment suspension for machinery, and allowing tax deductions for locally produced medical devices.
Other key changes include reducing VAT refund periods, unifying tax treatment for financial services, and subjecting the leasing of administrative buildings to the general VAT rate, while exempting those used for religious, charitable, social, educational, and health activities.

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