Egypt Cancels VAT on Specific Exported Services Effective November 2024

• Egypt has updated its VAT policy by removing VAT on certain exported services
• The Egyptian Tax Authority canceled two Circulars from 2019 that imposed VAT on exported services based on the beneficiary’s location in Egypt
• The change will take effect on 17 November 2024 aligning with VAT Law No 67 of 2016 and its Executive Regulations
• Companies that collected VAT under the old Circulars must still remit these amounts to the Egyptian Tax Authority
• The 2016 VAT Law broadly defines services but did not specifically define exported services until the 2017 Executive Regulations
• The revoked Circulars had applied VAT to services like marketing, warranty, and agency services if the economic beneficiary was in Egypt
• The new Instruction mandates a 0% VAT rate for these services if the recipient is abroad, requiring companies to keep specific documentation for tax inspections

Source: globaltaxnews.ey.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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