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Thursday, 19 May 2016

Is the Finance Ministry really going to let the House set the rate for the VAT?

It would appear that the Finance Ministry has not yet set the rate at which Egypt will collect a value-added tax (VAT), opting instead to leave that politically charged decision to the House of Representatives. If true, Al Borsa gets credit for the exclusive on this piece of political theater, which it says it has pulled out of an exclusive copy of the recently passed cabinet-level amendments to the act that will create the VAT. Other highlights:

  • Cancelling the 3% surtax on those not required to register for VAT;
  • Subjecting e-commerce transactions to VAT;
  • Requiring businesses to retain all records related to their VAT for a period of five years;
  • Establishing a new appeals system and new appeals committee for the VAT;
  • Sets a three-month grace period in which the VAT will be phased on;
  • Sets a fixed tax on certain goods and services.

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