2026 Construction VAT Amendments In Egypt

The 2026 Construction VAT Amendments in Egypt abolished the 5% specific tax on construction activities and replaced it, following approval by the Egyptian House of Representatives in June 2025, with the application of the standard 14% VAT rate. The exception to this amendment is limited to the construction and maintenance of places of worship, which remain subject to special tax treatment according to the provisions of the law. This amendment is considered one of the most important structural reforms in Egypt's indirect tax system in recent years, representing a radical shift in the tax treatment of the construction sector, which had long remained outside the full framework of theVAT systemunder Law No. 67 of 2016.