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Monday, 13 March 2017

Some restaurants exempt from VAT -Finance Ministry

Expect your corner koshary and ful shops to be exempt from VAT: The Finance Ministry issued a directive exempting some restaurants that typically serve-lower income groups from charging value-added tax (VAT) on food items served. Not part of this exemption are all franchises of international or domestic restaurants. Restaurants in shopping malls, tourist areas, airports, and gated residential compounds will also have to continue collecting the VAT, according to the directive. Also not exempted are restaurants serving food made from wheat (so no feteer / pizza, then?) or dough-based pastries as well as restaurants that charge their clientele extra for service “or any other charges.” Deputy Finance Minister Amr El Monayer, who had said last week to expect more guidance from the Ministry on the application of VAT, says the exemption comes in line with the social element of tax reform and the state’s policy to protect those least well off. He reiterated that businesses with a turnover of less than EGP 500k a year remain exempt from VAT.

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