The Finance Ministry of Egypt has an amended VAT Act to remove baked snacks and shower gel from the list of VAT-exempt goods says the local press reports. The current rate of 5% will be raised to the standard rate of 14%. Other goods in the list of Egypt VAT-exempt goods include tea, sugar, milk, utilities, banking services, medicines, and some health services. ‘Scheduled tax’ is levied on the selected goods among them.
Any person or corporation that sells goods or renders service with gross sales which equals or exceeds EGP500,000 is required to register for VAT. A taxpayer is mandatorily required to issue a tax invoice on the sale of goods or rendering of service subject to VAT. Tax returns can be filed and payments are made electronically via the portal of Egyptian Tax Authority.
More information regarding the amendment is yet to be revealed.
