- Egypt’s tax authorities issued Instructions No. 78 regarding VAT on exported services, effective November 17, 2024.
- Previously, services were considered exported and subject to 0% VAT if the benefit was received outside Egypt.
- Under the new instructions, services are classified as exported if the recipient is located abroad, regardless of where the benefit is received.
- To qualify for 0% VAT, the following documents must be provided:
- A signed service agreement between the Egyptian service provider and the foreign recipient.
- An electronic tax invoice from the Egyptian provider with all required details (tax ID, service type, value, recipient’s name, etc.).
- A bank transfer from abroad to a bank supervised by the Central Bank of Egypt, indicating payment for the exported service.
- Businesses operating in Egypt should reassess the VAT applicability on cross-border services and ensure they maintain necessary documentation to support the new zero-rating.
Source: kpmg.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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