Egypt Cuts Medical-Device VAT to 5%, Extends Suspension Periods and Reshapes Exemptions

• Law No. 149 of 2026 (published 28 July, effective 29 July 2026) extends the VAT-suspension period for machinery, equipment and medical devices used in industrial production from 2 to 4 years, and applies the reduced 5% rate (previously 14%) to qualifying medical devices. [deloitte.com], [dailynewsegypt.com]
• Exemptions for wheelchairs, prosthetics, hearing devices and kidney-dialysis equipment are broadened to parts and inputs, while soap, detergents and gypsum move to the standard 14% rate and natural gas shifts to a schedule tax of EGP 20 per 1,000 cubic feet. [deloitte.com], [sis.gov.eg]
• VAT-credit refund turnaround shortens (Law No. 6 of 2025 enterprises may claim after 3 months of an outstanding credit), and services on transit goods under customs supervision become exempt. [dailynewsegypt.com], [deloitte.com]

Extended article Egypt has amended VAT Law No. 67 of 2016 via Law No. 149 of 2026, part of the second phase of the government’s tax-facilitation initiative. Medical devices used in production or service delivery now attract 5% VAT rather than 14%, matching the rate for machinery and equipment, and input VAT deduction extends to qualifying locally produced machinery, equipment and medical devices (buses and passenger cars remain excluded). The maximum VAT-suspension period for such assets pending installation and industrial use rises from two to four years. [deloitte.com], [dailynewsegypt.com]

On exemptions, the law fully exempts inputs, parts and equipment for kidney-dialysis machines and filters, and exempts services performed on transit goods under customs supervision, supporting Egypt’s logistics-hub ambitions. Conversely, soap, industrial detergents and gypsum become subject to 14% VAT, and natural gas moves from exemption into the schedule-tax regime at EGP 20 per 1,000 cubic feet. On refunds, qualifying enterprises under Law No. 6 of 2025 may reclaim an accumulated VAT credit outstanding for more than three months, ahead of the general rule. [deloitte.com], [dailynewsegypt.com], [sis.gov.eg]