VAT In Egypt For Foreigners : A Comprehensive Guide

1. Intro

Nowadays, Egypt runs multiple international projects with direct foreign investments. To fulfill these projects, foreign companies register branches in ARE under intergovernmental agreements, concession agreements, and other contracts with specific tax incentives.

Most tax exemptions are applied to indirect taxes, such as VAT. In this case, a lot of companies pay VAT on incoming invoices and, therefore, show a credit VAT balance in their VAT tax returns.

To successfully refund these amounts, a company has to follow thoroughly the procedure established by VAT Law #67 Y 2016 and its Executive Regulations.

1. Governing Laws and Regulations

VAT was introduced in Egypt in September 2016 as a substitution for GST. VAT Law # 67 Y 2016 requires separate registration for VAT purposes from taxpayers and regulates all VAT-related procedures, such as tax imposition and maturity, tax value definition, documentation requirements (invoicing, books,