Back to the complete issue
Thursday, 28 November 2019

VAT taxpayers can now apply for fast-track refunds

REGULATION WATCH- VAT taxpayers can now apply for fast-track refunds: Taxpayers are now able to claim part of their VAT refunds in advance of the tax assessment after Finance Minister Mohamed Maait yesterday issued a decree amending the VAT Tax Act executive regulations, according to a Finance Ministry statement.

How do companies apply? Taxpayers must provide authorities with bank guarantees covering 65% of the proposed refund, and proof (i.e. purchase invoices, customs release forms) that they have paid the refundable amount.

When can they expect to receive the refund? If approved, taxpayers will receive a refund equal to the bank guarantee within 15 days of submission. A three-month window would then be allowed to file the remaining paperwork, after which the Tax Authority will assess the tax return and pay out the remaining refund within six months. Companies with prior history of tax evasion will not be eligible.

Background: The cabinet’s economic group approved the changes in a meeting earlier this month in response to investor complaints that tax refunds take too much time.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.