VAT fast-track refunds published in Egypt’s government gazette
REGULATION WATCH- Fast-track VAT drawbacks are now officially a thing: The Official Gazette published earlier this month a decree (pdf) by Finance Minister Mohamed Maait to allow companies to claim 65% of their VAT drawbacks before an assessment on the tax return is made. Companies seeking drawbacks will need to submit bank guarantees covering 65% of the rebate, along with proof (i.e. purchase invoices, customs release forms) that they have paid the refundable amount. The Finance Ministry decided late last year to amend the VAT Tax Act executive regulations to speed up refunds following complaints from companies that the process was too long and too bureaucratic.
Who qualifies for a VAT drawback? The 2016 VAT Tax Act allows full or partial rebates including VAT paid on exports during any stage in selling a service or product abroad, on machinery and equipment used to produce an end product or service already subject to VAT, or VAT remitted due to an accounting or other error.