Summary
- Egypt’s Citizen Budget summarises VAT amendments enacted through Law No. 149 of 2026.
- The measures cover transit services, medical products and equipment, industrial machinery, financial services, VAT credit refunds, property rental and natural gas.
- Law No. 149 of 2026 was published on 28 July 2026 and took effect on the following day.
Extended article
Egypt’s Ministry of Finance has highlighted a broad package of VAT changes enacted through Law No. 149 of 2026. Services performed on goods in transit through Egypt are exempt where transport takes place under customs supervision. Specified prosthetic devices, dialysis equipment, kidney filters and related inputs are also exempt. Machinery, equipment and medical devices used to produce goods or provide services are subject to a reduced 5% rate instead of the standard 14% rate.
For machinery, equipment and medical devices acquired for industrial production, VAT may be suspended for one year and, where justified, for a total period of up to three years. The VAT becomes exempt where the assets are placed into industrial production within the applicable period. The amendments also permit refunds of accumulated VAT credits after four consecutive tax periods, revise the exemption for property rentals used as independent business premises and subject natural gas to table tax of EGP 20 per 1,000 cubic feet. Businesses should review product classification, capital-project documentation and VAT credit ageing against the enacted provisions.
External sources: Read an overview of Law No. 149 of 2026
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