Egypt – New simplified VAT registration & reporting

There have been some recent indirect tax announcements in Egypt.

Egypt recently amended its VAT law to introduce new simplified registration and reporting requirements for non-resident digital services providers and sellers of goods. The legislation is effective as of January 27, 2022, but the law grants a 6-month grace period for non-resident providers of digital services, and a 2-year grace period, for non-resident sellers of goods to comply. This will allow the Egyptian tax authority to issue Executive Regulations and guidance. At present, it is unknown whether the local VAT registration threshold of EGP 500,000 (c.$32,000) will equally apply to non-resident suppliers. It is expected that non-residents may have to comply with Egypt’s mandatory e-invoicing requirements.

The Egyptian Tax Authority (ETA) has issued a decree implementing the e-receipt system for companies located in Cairo, Giza and Kaolbia with effect July 1, 2022. Egyptian taxpayers should generate a QR code and place it on the printed receipt. This QR code represents a URL to the receipt details in the eInvoicing portal. The overall goal of the Egyptian e-receipts solution is to enable the ETA to digitally capture receipts issued by the taxpayers in the country to consumers at the point of sale (POS). E-receipts will enable reporting of transactions to the ETA and provide some new insights and help the ETA and Ministry of Finance (MOF) fight fraud.

Speak to an Avalara expert to discuss VAT and our e-invoicing solutions.