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openaccountants/skills/egypt-vat.md
egypt-vat.md437 lines17.1 KB
v20
1---
2name: egypt-vat
3description: Use this skill whenever asked to prepare, review, or classify transactions for an Egypt VAT return or advise on Egyptian VAT registration, filing, and e-invoicing compliance. Trigger on phrases like "prepare Egypt VAT return", "Egyptian VAT", "ضريبة القيمة المضافة مصر", "ETA e-invoice", or any Egypt VAT request. ALWAYS read this skill before touching any Egypt VAT work.
4version: 2.0
5jurisdiction: EG
6tax_year: 2025
7category: international
8depends_on:
9 - vat-workflow-base
10---
11 
12# Egypt VAT (ضريبة القيمة المضافة) Skill v2.0
13 
14---
15 
16## Section 1 — Quick reference
17 
18| Field | Value |
19|---|---|
20| Country | Egypt (جمهورية مصر العربية) |
21| Tax | Value Added Tax (ضريبة القيمة المضافة — VAT) |
22| Currency | EGP (Egyptian Pound — ج.م) |
23| Standard rate | 14% |
24| Reduced rate | 5% (selected equipment, machinery, some agricultural inputs) |
25| Zero rate | 0% (exports of goods and services, international transport, diplomatic supplies) |
26| Exempt | Financial services, insurance, medical services, educational services, residential rent, utilities (in certain cases) |
27| Registration threshold | EGP 500,000 annual turnover |
28| Tax authority | Egyptian Tax Authority (ETA — مصلحة الضرائب المصرية) |
29| Filing portal | ETA e-Invoice portal — https://invoicing.eta.gov.eg |
30| Return form | VAT Return (إقرار ضريبة القيمة المضافة) |
31| Filing frequency | Monthly |
32| Deadline | Last day of the following month |
33| e-Invoice | Mandatory for all VAT-registered businesses (ETA e-Invoice system) |
34| Contributor | Open Accountants Community |
35| Validated by | Pending — requires sign-off by Egypt-licensed CPA (محاسب قانوني) |
36| Skill version | 2.0 |
37 
38### Key return sections
39 
40| Section | Meaning |
41|---|---|
42| Section A | Taxable sales at 14% (net) |
43| Section B | Taxable sales at 5% (net) |
44| Section C | Zero-rated exports (net) |
45| Section D | Exempt supplies (net) |
46| Section E | Total output VAT |
47| Section F | Input VAT on purchases at 14% |
48| Section G | Input VAT on purchases at 5% |
49| Section H | Import VAT paid at customs |
50| Section I | Total input VAT |
51| Section J | Net VAT payable (E − I; if positive) |
52| Section K | Excess input VAT carried forward |
53 
54### Conservative defaults
55 
56| Ambiguity | Default |
57|---|---|
58| Unknown rate on a sale | 14% standard |
59| Unknown whether 5% rate applies | 14% until confirmed |
60| Unknown whether export documentation complete | Treat as domestic 14% |
61| Unknown business-use % (vehicle, phone, home) | 0% input credit |
62| Unknown whether e-Invoice issued via ETA | No input credit until confirmed |
63| Financial service vs professional service | Treat as professional — 14% |
64| Foreign digital service (B2B) | 14% reverse-charge — buyer self-assesses |
65 
66### Red flag thresholds
67 
68| Threshold | Value |
69|---|---|
70| HIGH single transaction | EGP 500,000 |
71| HIGH tax delta on single conservative default | EGP 70,000 |
72| MEDIUM counterparty concentration | >40% of output or input |
73| MEDIUM conservative default count | >4 per return |
74| LOW absolute net VAT position | EGP 1,000,000 |
75 
76---
77 
78## Section 2 — Required inputs and refusal catalogue
79 
80### Required inputs
81 
82Before starting any Egypt VAT work, obtain:
83 
841. ETA Tax Registration Number (TRN — رقم التسجيل الضريبي — 9 digits)
852. ETA e-Invoice portal credentials and API key for accessing issued/received e-invoices
863. Monthly bank statements in EGP (all business accounts)
874. ETA e-Invoice XML downloads for all sales and purchases
885. Import customs declarations (بيان جمركي) from Egyptian Customs Authority
896. Prior month VAT return (for carried-forward excess input credit)
907. Details of export transactions with shipping documentation
91 
92### Refusal catalogue
93 
94Refuse and escalate to a licensed Egyptian tax consultant for:
95- Partial exemption calculations (businesses with mixed taxable/exempt supplies)
96- VAT on real estate and construction (complex rules)
97- Special tax regimes (simplified VAT for certain agricultural cooperatives)
98- Reverse-charge on imported services — complex cases involving multiple service types
99- VAT refund claims for exporters (long process requiring ETA audit)
100- Turnover tax (ضريبة المبيعات) on certain categories — replaced by VAT but some transitional issues remain
101- VAT on free zones and special economic zones
102 
103---
104 
105## Section 3 — Supplier pattern library
106 
107### 3.1 Banking and financial services
108 
109| Supplier | Typical description | VAT rate | Input credit |
110|---|---|---|---|
111| Commercial International Bank (CIB) | Bank fees, transfers | Exempt | No |
112| National Bank of Egypt (NBE — البنك الأهلي المصري) | Loans, account fees | Exempt | No |
113| Banque Misr (بنك مصر) | Commercial banking | Exempt | No |
114| QNB Alahli (بنك قطر الوطني الأهلي) | Banking services | Exempt | No |
115| Banque du Caire | Business banking | Exempt | No |
116| Fawry (فوري) | Bill payment, digital collections | 14% | Yes |
117| Instapay (إنستا باي) | P2P and B2B payments | Exempt (payment service) | No |
118| Paymob | Payment gateway | 14% | Yes |
119| Vodafone Cash | Mobile money transfer | Exempt | No |
120| Orange Cash | Mobile wallet | Exempt | No |
121 
122### 3.2 Electricity and utilities
123 
124| Supplier | Typical description | VAT rate | Input credit |
125|---|---|---|---|
126| EEHC / Cairo Electricity (شركة القاهرة لتوزيع الكهرباء) | Electricity — commercial | 14% | Yes |
127| Alexandria Electricity (شركة الإسكندرية لتوزيع الكهرباء) | Electricity — commercial | 14% | Yes |
128| Cairo Water (شركة مياه القاهرة) | Water supply | 14% | Yes |
129| Town Gas (طاون جاس) | Natural gas | 14% | Yes |
130| Sawi Gas | Gas — household/commercial | 14% | Yes |
131 
132### 3.3 Telecommunications
133 
134| Supplier | Typical description | VAT rate | Input credit |
135|---|---|---|---|
136| Vodafone Egypt (فودافون مصر) | Mobile, data | 14% | Yes (business use) |
137| Orange Egypt (أورنج مصر) | Mobile, fiber internet | 14% | Yes (business use) |
138| Etisalat Egypt / e& Egypt | Mobile, business lines | 14% | Yes (business use) |
139| WE (المصرية للاتصالات) | Fixed line, ADSL | 14% | Yes (business use) |
140| Telecom Egypt | Wholesale, enterprise | 14% | Yes |
141 
142### 3.4 Transport and travel
143 
144| Supplier | Typical description | VAT rate | Input credit |
145|---|---|---|---|
146| EgyptAir (مصر للطيران) | Domestic flights | 14% | Yes |
147| EgyptAir | International flights | 0% (export) | No input applicable |
148| Air Arabia Egypt | Domestic/regional flights | 14% (domestic) | Yes |
149| Egyptian National Railways (ENR — السكك الحديدية) | Train tickets | Exempt | No |
150| Cairo Metro (مترو الأنفاق) | Metro tickets | Exempt | No |
151| Uber Egypt | Ride-hailing | 14% | Yes (business use) |
152| Careem Egypt | Ride-hailing | 14% | Yes (business use) |
153| InDriver Egypt | Ride-hailing | 14% | Yes |
154 
155### 3.5 Logistics and courier
156 
157| Supplier | Typical description | VAT rate | Input credit |
158|---|---|---|---|
159| Aramex Egypt (أرامكس مصر) | International/domestic courier | 14% | Yes |
160| DHL Egypt | International courier | 0% (export) / 14% (domestic) | Yes |
161| FedEx Egypt | International courier | 0% / 14% | Yes |
162| Egyptian Post (البريد المصري) | Postal services | 14% | Yes |
163| Mylerz | E-commerce logistics | 14% | Yes |
164| Bosta | Last-mile delivery | 14% | Yes |
165 
166### 3.6 Retail and office supplies
167 
168| Supplier | Typical description | VAT rate | Input credit |
169|---|---|---|---|
170| Carrefour Egypt (كارفور مصر) | Supermarket — mixed goods | 14% / exempt food mix | Partial |
171| Spinneys Egypt | Premium supermarket | 14% | Yes |
172| Seoudi Market | Upscale grocery | 14% | Yes |
173| Metro Markets (ميترو) | Wholesale/cash-and-carry | 14% | Yes |
174| Office 1 Egypt | Office supplies | 14% | Yes |
175| B.Tech | Electronics retailer | 14% | Yes |
176| Xcite | Electronics | 14% | Yes |
177 
178### 3.7 Software and digital services
179 
180| Supplier | Typical description | VAT rate | Input credit |
181|---|---|---|---|
182| Odoo Egypt | ERP — B2B | 14% | Yes |
183| Fintech Galaxy / Khazna | Fintech platform | 14% | Yes |
184| Microsoft Egypt (Azure, M365) | Cloud services — B2B | 14% (buyer reverse-charge) | Yes |
185| Google Egypt (Workspace, Ads) | Digital services — B2B | 14% (buyer reverse-charge) | Yes |
186| Amazon AWS Egypt | Cloud — B2B | 14% (buyer reverse-charge) | Yes |
187| Zoom Egypt | Video conferencing — B2B | 14% (buyer reverse-charge) | Yes |
188| ETA e-Invoice portal fees | System fees (if any) | 14% | Yes |
189 
190### 3.8 Professional services
191 
192| Supplier | Typical description | VAT rate | Input credit |
193|---|---|---|---|
194| Certified Public Accountant (محاسب قانوني) | Audit, tax advisory | 14% | Yes |
195| Law firm (مكتب محاماة) | Legal services | 14% | Yes |
196| Engineering / consulting firm | Technical consulting | 14% | Yes |
197| Advertising agency | Marketing, PR | 14% | Yes |
198| Recruitment firm | HR services | 14% | Yes |
199 
200### 3.9 Insurance
201 
202| Supplier | Typical description | VAT rate | Input credit |
203|---|---|---|---|
204| Misr Insurance (مصر للتأمين) | All lines | Exempt | No |
205| Suez Canal Insurance | Marine, property | Exempt | No |
206| AXA Egypt | Health, motor, property | Exempt | No |
207| Allianz Egypt | Business insurance | Exempt | No |
208 
209### 3.10 Healthcare
210 
211| Supplier | Typical description | VAT rate | Input credit |
212|---|---|---|---|
213| Private hospital / clinic | Medical treatment | Exempt | No |
214| Pharmacy (صيدلية) | Medicines | Exempt | No |
215| Medical equipment supplier | Devices | 5% (reduced) | Yes |
216| Seif Pharmacy / El-Ezaby | Pharmacy chain | Exempt (medicines) | No |
217 
218---
219 
220## Section 4 — Worked examples
221 
222### Example 1 — Standard VAT on service sale
223 
224**Scenario:** Cairo-based IT consulting firm issues e-Invoice to Egyptian corporate client.
225 
226**Bank statement line (CIB format):**
227```
228Date : 15/04/2025
229Transaction : Credit Transfer
230Description : TECH SOLUTIONS CO — INV-2025-041 — IT CONSULTING SERVICES
231Amount : +EGP 570,000.00
232Balance : EGP 2,570,000.00
233```
234 
235**Working:**
236- ETA e-Invoice: net EGP 500,000 + VAT 14% EGP 70,000 = EGP 570,000
237- Return entry: Section A — EGP 500,000 | Output VAT: EGP 70,000
238 
239---
240 
241### Example 2 — Export of services (zero-rated)
242 
243**Scenario:** Egyptian software firm exports SaaS to UK client. Payment in GBP.
244 
245**Bank statement line (NBE format):**
246```
247Date : 20/04/2025
248Transaction : Foreign Currency Credit
249Description : BRITISH TECH LTD UK — SaaS SUBSCRIPTION APR 2025
250Amount : +EGP 1,250,000.00 (GBP 28,000)
251```
252 
253**Working:**
254- Export of services consumed outside Egypt by foreign entity — 0% VAT
255- Requires: contract, bank transfer evidence, service agreement showing UK consumption
256- Return entry: Section C — EGP 1,250,000 | VAT: EGP 0
257 
258---
259 
260### Example 3 — Reverse-charge on foreign digital service
261 
262**Scenario:** Company pays for Microsoft Azure (billed from Microsoft Ireland).
263 
264**Bank statement line (Banque Misr format):**
265```
266Date : 05/04/2025
267Transaction : Foreign Payment / SWIFT
268Description : MICROSOFT IRELAND — AZURE CLOUD SERVICES APR 2025
269Amount : -EGP 112,000.00
270```
271 
272**Working:**
273- Foreign digital service to Egyptian business — taxable in Egypt
274- Self-assess: EGP 112,000 × 14/114 = EGP 13,754 VAT (or EGP 98,246 net + EGP 13,754 VAT)
275- Declare as output VAT AND claim as input — net zero for fully taxable business
276- Include in VAT return both output (Section E) and input (Section I)
277 
278---
279 
280### Example 4 — Fawry payment collection (14% service fee)
281 
282**Scenario:** Company uses Fawry to collect customer payments; Fawry charges a collection fee.
283 
284**Bank statement line (QNB Alahli format):**
285```
286Date : 30/04/2025
287Transaction : Debit — Service Fee
288Description : FAWRY FOR BANKING TECHNOLOGY — APR 2025 COLLECTION FEE
289Amount : -EGP 57,000.00
290```
291 
292**Working:**
293- Fawry e-Invoice: net EGP 50,000 + VAT 14% EGP 7,000 = EGP 57,000
294- Input credit: EGP 7,000 — deductible (business service)
295- Return entry: Section F — EGP 50,000; Input VAT: EGP 7,000
296 
297---
298 
299### Example 5 — Import of goods (customs VAT)
300 
301**Scenario:** Importing machinery from Germany. EGP equivalent at import.
302 
303**Bank statement line (CIB format):**
304```
305Date : 08/04/2025
306Transaction : Customs Payment
307Description : CUSTOMS DUTY + VAT — BAYAN 2025-EG-04-7890 — INDUSTRIAL MACHINERY
308Amount : -EGP 700,000.00
309```
310 
311**Working:**
312- Customs declaration: CIF value EGP 4,000,000 + customs duty EGP 1,000,000 = EGP 5,000,000 × 14% = EGP 700,000 VAT
313- Pay at customs; claim as input VAT in monthly return (Section H)
314- Input credit: EGP 700,000 — full credit if machinery for taxable production
315 
316---
317 
318### Example 6 — Monthly return summary
319 
320**Scenario:** Trading company — April 2025.
321 
322| Item | Net (EGP) | VAT (EGP) |
323|---|---|---|
324| Domestic sales at 14% | 3,000,000 | 420,000 |
325| Export sales (0%) | 1,000,000 | 0 |
326| Total Output | 4,000,000 | 420,000 |
327| Local purchases | 1,500,000 | 210,000 |
328| Import VAT (customs) | 2,000,000 | 280,000 |
329| Foreign services (reverse-charge) | 200,000 | 28,000 |
330| Total Input | 3,700,000 | 518,000 |
331| **Excess input c/f** | | **98,000** |
332 
333---
334 
335## Section 5 — Tier 1 rules (compressed)
336 
337**Rate assignment:**
338- 14% standard: most goods and services
339- 5%: selected equipment and machinery (check ETA reduced-rate schedule)
340- 0%: exports of goods with customs declaration, services exported to non-residents consumed outside Egypt, international transport
341- Exempt: financial services, insurance, medical services by licensed practitioners, educational services, residential rent, public transport (ENR, metro)
342 
343**Input credit:**
344- Credit allowed on all taxable purchases for taxable business activities
345- No credit on exempt purchases (financial services, insurance)
346- Reverse-charge on imported services: output and input net to zero for fully taxable businesses
347- Import VAT paid at customs: claim as input in same month's return with customs declaration
348- e-Invoice requirement: from October 2020 ETA made e-invoice mandatory — invoices without valid ETA UUID have contested input credit eligibility
349 
350**Filing mechanics:**
351- File monthly via ETA online portal by last day of following month
352- All B2B sales require ETA e-Invoice (UUID-stamped) transmitted to ETA in real time
353- Excess input VAT carries forward; refunds available for exporters after ETA audit
354 
355---
356 
357## Section 6 — Tier 2 catalogue (genuinely data-unknowable items)
358 
359| Item | Why unknowable | What to ask |
360|---|---|---|
361| Reduced-rate machinery (5%) | Whether specific item is on the ministerial reduced-rate schedule | "Provide item description and HS code — need to check ETA 5% schedule." |
362| Mixed-use property rent | Commercial (14%) vs residential (exempt) | "Is the lease for commercial or residential use? Provide contract." |
363| Export qualification | Whether service consumed outside Egypt | "Where is the customer? Evidence of offshore service consumption?" |
364| Foreign digital service | B2B (reverse-charge) vs B2C — determines who accounts | "Is buyer an Egyptian TRN-registered entity?" |
365| Vehicle purchase | Business vs personal — determines input credit eligibility | "Is this vehicle registered in the company's name for business use?" |
366| Entertainment | Must prove business purpose for input credit | "List attendees and business purpose." |
367| e-Invoice validity | Old paper invoices may not qualify for input credit post-mandate | "Confirm supplier is ETA e-Invoice registered — provide UUID reference." |
368 
369---
370 
371## Section 7 — Excel working paper
372 
373**Columns:** Date | Supplier/Customer | TRN | ETA Invoice UUID | Net (EGP) | VAT Rate % | VAT (EGP) | In/Out | Zero-rated? | Exempt? | Tier 2 flag | Notes
374 
375**Tab structure:**
3761. `Output_Sales` — all sales by rate
3772. `Input_Purchases` — all purchases with VAT credit
3783. `Import_Customs` — import VAT paid at customs
3794. `ReverseCharge_Foreign` — foreign services
3805. `VATSummary` — monthly return totals
3816. `Tier2_Items` — awaiting client response
382 
383**Key formula:**
384```
385Net_VAT = Total_Output_VAT - Total_Input_VAT - Prior_Excess_Credit
386```
387 
388---
389 
390## Section 8 — Bank statement reading guide
391 
392### CIB format
393```
394Date : 15/04/2025
395Transaction : Credit Transfer
396Description : COMPANY NAME — INV-2025-041 — SERVICE DESCRIPTION
397Amount : +EGP 570,000.00
398Balance : EGP 2,570,000.00
399```
400 
401### NBE (National Bank of Egypt) format
402```
40315/04/2025 | Incoming Transfer | COMPANY NAME | REF: INV-041 | +570,000.00 EGP
404```
405 
406### Key patterns:
407- **EGP number format:** Comma = thousands; period = decimal (EGP 570,000.00)
408- **Foreign Currency Credit:** Foreign payment — check for export zero-rate or reverse-charge
409- **Customs Payment:** Import duty + VAT — claim VAT as input with customs declaration
410- **SWIFT/Foreign Payment:** May trigger reverse-charge on imported services
411 
412---
413 
414## Section 9 — Onboarding fallback
415 
416When client cannot provide ETA e-Invoices for all transactions:
417 
4181. Use bank statement amounts as VAT-inclusive totals and back-calculate:
419 - Net = Total ÷ 1.14 | VAT = Total − Net
4202. Apply conservative defaults: 14% output; 0% input credit without ETA e-Invoice UUID
4213. Flag all items without e-Invoice UUID in Tier2_Items tab
4224. Issue data request listing missing invoice references
4235. Warn client: ETA can disallow input credit for invoices without valid UUID — systemic risk if supplier not e-Invoice registered
424 
425---
426 
427## Section 10 — Reference material
428 
429| Resource | Reference |
430|---|---|
431| ETA e-Invoice portal | https://invoicing.eta.gov.eg |
432| ETA main portal | https://www.eta.gov.eg |
433| VAT Law No. 67 of 2016 | ETA website — legislation section |
434| VAT Executive Regulations | Ministerial Decree 2017 |
435| ETA e-Invoice mandatory rules | ETA Decree 2020/2021 — phased rollout |
436| Reduced rate schedule | Annex to VAT Law — ministerial updates |
437 

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About

Use this skill whenever asked to prepare, review, or classify transactions for an Egypt VAT return or advise on Egyptian VAT registration, filing, and e-invoicing compliance. Trigger on phrases like "prepare Egypt VAT return", "Egyptian VAT", "ضريبة القيمة المضافة مصر", "ETA e-invoice", or any Egypt VAT request. ALWAYS read this skill before touching any Egypt VAT work.

EGty-2025

EG skill: