Value Added Tax (VAT) In Egypt: Current Discussions And Concerns

Value Added Tax (VAT) is the tax on the amount by which the value of an article/item has been increased at each stage of its production or distribution which means that taxes are applied to the difference between the seller-purchased price and the resale price. This is accomplished by taking full tax on all sales, but refunding the tax difference to the sellers.

It is a part from the consumption tax but unlike the sales applies to the sale of goods, less often to the sales of services. The tax is applied at the point of sale. Laws may allow sellers to itemize the tax separately from the price of the goods or services, or require it to be included in the price (tax-inclusive). The tax amount is usually calculated by applying apercentagerate to the taxable price of a sale. When a tax on goods or services is paid to a governing body directly by a consumer, it is usually called ause tax. Often laws provide for theexemptionof certain goods or services from sales and use