- Egypt enacted a tax simplification package effective 29 July 2026 that lowers compliance burdens and changes several VAT rules.
- A 5% reduced VAT rate now applies to machinery and medical equipment used in producing goods; VAT can be suspended for one year (extendable in some cases) for medical devices used in industrial production.
- VAT credit balances may be refunded after four consecutive tax periods, rather than after six months.
- Natural gas is removed from the exemption list and taxed at EGP 20 per thousand cubic feet; leasing headquarters premises is now subject to the standard 14% VAT rate instead of exemption.
- VAT exemption is extended to financial services provided by the National Postal Authority and now also covers non-banking financial services supervised by the Central Bank.
Source: bdo.global
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.
