05 August 2016 Egypt issues draft VAT law to replace current sales tax law Egypt has issued a new draft Value Added Tax (VAT) law intended to: (i) Avoid double taxation inherent in the sales tax law by providing for deductions of tax paid on direct and indirect inputs; (ii) Increase Egyptian treasury collections by imposing VAT on all goods and services subject to certain scheduled exemptions; and (iii) Increase tax collections while decreasing the number of taxpayers, by increasing the tax registration threshold from EGP54,000 (approx. US$6,000) to EGP500,000 (US$56,000) for manufacturers and service providers, and EGP 150,000 (approx. US$17,000) for traders. Document ID: 2016-1353 |
