Back to the complete issue
Monday, 1 November 2021

Egypt is getting a digital VAT drawback system

Tourists shopping in Egypt will soon be able to claim VAT drawback via a digital system prior to departure, the Finance Ministry said in a statement yesterday.

Tourists will need to spend at least EGP 1.5k on an item to reclaim VAT; only visitors who stay in Egypt for less than three months can claim a drawback.

The system will be gradually rolled out across the country: The project will begin in Sharm El Sheikh and Hurghada before the end of the year before being extended to Luxor and Aswan and then all of Egypt’s cities and ports, FinMin tax advisor Ramy Youssef said yesterday (watch, runtime: 4:33).

A local company will be established to run the new system alongside an unnamed international firm, according to the statement. Recently listed state e-payments firm e-Finance and its e-Tax subsidiary look set to be involved, with representatives from both firms joining the government committee tasked with managing the rollout.

The latest in a digital overhaul of taxation: The VAT drawback system joins the unified digital tax system and e-invoicing initiatives currently underway as Egypt looks to digitize its tax system.

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 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; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.