Egypt VAT (ضريبة القيمة المضافة) Skill v2.0

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Section 1 — Quick reference

Field	Value
Country	Egypt (جمهورية مصر العربية)
Tax	Value Added Tax (ضريبة القيمة المضافة — VAT)
Currency	EGP (Egyptian Pound — ج.م)
Standard rate	14%
Reduced rate	5% (selected equipment, machinery, some agricultural inputs)
Zero rate	0% (exports of goods and services, international transport, diplomatic supplies)
Exempt	Financial services, insurance, medical services, educational services, residential rent, utilities (in certain cases)
Registration threshold	EGP 500,000 annual turnover
Tax authority	Egyptian Tax Authority (ETA — مصلحة الضرائب المصرية)
Filing portal	ETA e-Invoice portal — https://invoicing.eta.gov.eg
Return form	VAT Return (إقرار ضريبة القيمة المضافة)
Filing frequency	Monthly
Deadline	Last day of the following month
e-Invoice	Mandatory for all VAT-registered businesses (ETA e-Invoice system)
Contributor	Open Accountants Community
Validated by	Pending — requires sign-off by Egypt-licensed CPA (محاسب قانوني)
Skill version	2.0

Key return sections

Section	Meaning
Section A	Taxable sales at 14% (net)
Section B	Taxable sales at 5% (net)
Section C	Zero-rated exports (net)
Section D	Exempt supplies (net)
Section E	Total output VAT
Section F	Input VAT on purchases at 14%
Section G	Input VAT on purchases at 5%
Section H	Import VAT paid at customs
Section I	Total input VAT
Section J	Net VAT payable (E − I; if positive)
Section K	Excess input VAT carried forward

Conservative defaults

Ambiguity	Default
Unknown rate on a sale	14% standard
Unknown whether 5% rate applies	14% until confirmed
Unknown whether export documentation complete	Treat as domestic 14%
Unknown business-use % (vehicle, phone, home)	0% input credit
Unknown whether e-Invoice issued via ETA	No input credit until confirmed
Financial service vs professional service	Treat as professional — 14%
Foreign digital service (B2B)	14% reverse-charge — buyer self-assesses

Red flag thresholds

Threshold	Value
HIGH single transaction	EGP 500,000
HIGH tax delta on single conservative default	EGP 70,000
MEDIUM counterparty concentration	>40% of output or input
MEDIUM conservative default count	>4 per return
LOW absolute net VAT position	EGP 1,000,000

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Section 2 — Required inputs and refusal catalogue

Required inputs

Before starting any Egypt VAT work, obtain:

1. ETA Tax Registration Number (TRN — رقم التسجيل الضريبي — 9 digits)
2. ETA e-Invoice portal credentials and API key for accessing issued/received e-invoices
3. Monthly bank statements in EGP (all business accounts)
4. ETA e-Invoice XML downloads for all sales and purchases
5. Import customs declarations (بيان جمركي) from Egyptian Customs Authority
6. Prior month VAT return (for carried-forward excess input credit)
7. Details of export transactions with shipping documentation

Refusal catalogue

Refuse and escalate to a licensed Egyptian tax consultant for:

• Partial exemption calculations (businesses with mixed taxable/exempt supplies)
• VAT on real estate and construction (complex rules)
• Special tax regimes (simplified VAT for certain agricultural cooperatives)
• Reverse-charge on imported services — complex cases involving multiple service types
• VAT refund claims for exporters (long process requiring ETA audit)
• Turnover tax (ضريبة المبيعات) on certain categories — replaced by VAT but some transitional issues remain
• VAT on free zones and special economic zones

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Section 3 — Supplier pattern library

3.1 Banking and financial services

Supplier	Typical description	VAT rate	Input credit
Commercial International Bank (CIB)	Bank fees, transfers	Exempt	No
National Bank of Egypt (NBE — البنك الأهلي المصري)	Loans, account fees	Exempt	No
Banque Misr (بنك مصر)	Commercial banking	Exempt	No
QNB Alahli (بنك قطر الوطني الأهلي)	Banking services	Exempt	No
Banque du Caire	Business banking	Exempt	No
Fawry (فوري)	Bill payment, digital collections	14%	Yes
Instapay (إنستا باي)	P2P and B2B payments	Exempt (payment service)	No
Paymob	Payment gateway	14%	Yes
Vodafone Cash	Mobile money transfer	Exempt	No
Orange Cash	Mobile wallet	Exempt	No

3.2 Electricity and utilities

Supplier	Typical description	VAT rate	Input credit
EEHC / Cairo Electricity (شركة القاهرة لتوزيع الكهرباء)	Electricity — commercial	14%	Yes
Alexandria Electricity (شركة الإسكندرية لتوزيع الكهرباء)	Electricity — commercial	14%	Yes
Cairo Water (شركة مياه القاهرة)	Water supply	14%	Yes
Town Gas (طاون جاس)	Natural gas	14%	Yes
Sawi Gas	Gas — household/commercial	14%	Yes

3.3 Telecommunications

Supplier	Typical description	VAT rate	Input credit
Vodafone Egypt (فودافون مصر)	Mobile, data	14%	Yes (business use)
Orange Egypt (أورنج مصر)	Mobile, fiber internet	14%	Yes (business use)
Etisalat Egypt / e& Egypt	Mobile, business lines	14%	Yes (business use)
WE (المصرية للاتصالات)	Fixed line, ADSL	14%	Yes (business use)
Telecom Egypt	Wholesale, enterprise	14%	Yes

3.4 Transport and travel

Supplier	Typical description	VAT rate	Input credit
EgyptAir (مصر للطيران)	Domestic flights	14%	Yes
EgyptAir	International flights	0% (export)	No input applicable
Air Arabia Egypt	Domestic/regional flights	14% (domestic)	Yes
Egyptian National Railways (ENR — السكك الحديدية)	Train tickets	Exempt	No
Cairo Metro (مترو الأنفاق)	Metro tickets	Exempt	No
Uber Egypt	Ride-hailing	14%	Yes (business use)
Careem Egypt	Ride-hailing	14%	Yes (business use)
InDriver Egypt	Ride-hailing	14%	Yes

3.5 Logistics and courier

Supplier	Typical description	VAT rate	Input credit
Aramex Egypt (أرامكس مصر)	International/domestic courier	14%	Yes
DHL Egypt	International courier	0% (export) / 14% (domestic)	Yes
FedEx Egypt	International courier	0% / 14%	Yes
Egyptian Post (البريد المصري)	Postal services	14%	Yes
Mylerz	E-commerce logistics	14%	Yes
Bosta	Last-mile delivery	14%	Yes

3.6 Retail and office supplies

Supplier	Typical description	VAT rate	Input credit
Carrefour Egypt (كارفور مصر)	Supermarket — mixed goods	14% / exempt food mix	Partial
Spinneys Egypt	Premium supermarket	14%	Yes
Seoudi Market	Upscale grocery	14%	Yes
Metro Markets (ميترو)	Wholesale/cash-and-carry	14%	Yes
Office 1 Egypt	Office supplies	14%	Yes
B.Tech	Electronics retailer	14%	Yes
Xcite	Electronics	14%	Yes

3.7 Software and digital services

Supplier	Typical description	VAT rate	Input credit
Odoo Egypt	ERP — B2B	14%	Yes
Fintech Galaxy / Khazna	Fintech platform	14%	Yes
Microsoft Egypt (Azure, M365)	Cloud services — B2B	14% (buyer reverse-charge)	Yes
Google Egypt (Workspace, Ads)	Digital services — B2B	14% (buyer reverse-charge)	Yes
Amazon AWS Egypt	Cloud — B2B	14% (buyer reverse-charge)	Yes
Zoom Egypt	Video conferencing — B2B	14% (buyer reverse-charge)	Yes
ETA e-Invoice portal fees	System fees (if any)	14%	Yes

3.8 Professional services

Supplier	Typical description	VAT rate	Input credit
Certified Public Accountant (محاسب قانوني)	Audit, tax advisory	14%	Yes
Law firm (مكتب محاماة)	Legal services	14%	Yes
Engineering / consulting firm	Technical consulting	14%	Yes
Advertising agency	Marketing, PR	14%	Yes
Recruitment firm	HR services	14%	Yes

3.9 Insurance

Supplier	Typical description	VAT rate	Input credit
Misr Insurance (مصر للتأمين)	All lines	Exempt	No
Suez Canal Insurance	Marine, property	Exempt	No
AXA Egypt	Health, motor, property	Exempt	No
Allianz Egypt	Business insurance	Exempt	No

3.10 Healthcare

Supplier	Typical description	VAT rate	Input credit
Private hospital / clinic	Medical treatment	Exempt	No
Pharmacy (صيدلية)	Medicines	Exempt	No
Medical equipment supplier	Devices	5% (reduced)	Yes
Seif Pharmacy / El-Ezaby	Pharmacy chain	Exempt (medicines)	No

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Section 4 — Worked examples

Example 1 — Standard VAT on service sale

Scenario: Cairo-based IT consulting firm issues e-Invoice to Egyptian corporate client.

Bank statement line (CIB format):

Date        : 15/04/2025
Transaction : Credit Transfer
Description : TECH SOLUTIONS CO — INV-2025-041 — IT CONSULTING SERVICES
Amount      : +EGP 570,000.00
Balance     : EGP 2,570,000.00

Working:

• ETA e-Invoice: net EGP 500,000 + VAT 14% EGP 70,000 = EGP 570,000
• Return entry: Section A — EGP 500,000 | Output VAT: EGP 70,000

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Example 2 — Export of services (zero-rated)

Scenario: Egyptian software firm exports SaaS to UK client. Payment in GBP.

Bank statement line (NBE format):

Date        : 20/04/2025
Transaction : Foreign Currency Credit
Description : BRITISH TECH LTD UK — SaaS SUBSCRIPTION APR 2025
Amount      : +EGP 1,250,000.00 (GBP 28,000)

Working:

• Export of services consumed outside Egypt by foreign entity — 0% VAT
• Requires: contract, bank transfer evidence, service agreement showing UK consumption
• Return entry: Section C — EGP 1,250,000 | VAT: EGP 0

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Example 3 — Reverse-charge on foreign digital service

Scenario: Company pays for Microsoft Azure (billed from Microsoft Ireland).

Bank statement line (Banque Misr format):

Date        : 05/04/2025
Transaction : Foreign Payment / SWIFT
Description : MICROSOFT IRELAND — AZURE CLOUD SERVICES APR 2025
Amount      : -EGP 112,000.00

Working:

• Foreign digital service to Egyptian business — taxable in Egypt
• Self-assess: EGP 112,000 × 14/114 = EGP 13,754 VAT (or EGP 98,246 net + EGP 13,754 VAT)
• Declare as output VAT AND claim as input — net zero for fully taxable business
• Include in VAT return both output (Section E) and input (Section I)

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Example 4 — Fawry payment collection (14% service fee)

Scenario: Company uses Fawry to collect customer payments; Fawry charges a collection fee.

Bank statement line (QNB Alahli format):

Date        : 30/04/2025
Transaction : Debit — Service Fee
Description : FAWRY FOR BANKING TECHNOLOGY — APR 2025 COLLECTION FEE
Amount      : -EGP 57,000.00

Working:

• Fawry e-Invoice: net EGP 50,000 + VAT 14% EGP 7,000 = EGP 57,000
• Input credit: EGP 7,000 — deductible (business service)
• Return entry: Section F — EGP 50,000; Input VAT: EGP 7,000

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Example 5 — Import of goods (customs VAT)

Scenario: Importing machinery from Germany. EGP equivalent at import.

Bank statement line (CIB format):

Date        : 08/04/2025
Transaction : Customs Payment
Description : CUSTOMS DUTY + VAT — BAYAN 2025-EG-04-7890 — INDUSTRIAL MACHINERY
Amount      : -EGP 700,000.00

Working:

• Customs declaration: CIF value EGP 4,000,000 + customs duty EGP 1,000,000 = EGP 5,000,000 × 14% = EGP 700,000 VAT
• Pay at customs; claim as input VAT in monthly return (Section H)
• Input credit: EGP 700,000 — full credit if machinery for taxable production

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Example 6 — Monthly return summary

Scenario: Trading company — April 2025.

Item	Net (EGP)	VAT (EGP)
Domestic sales at 14%	3,000,000	420,000
Export sales (0%)	1,000,000	0
Total Output	4,000,000	420,000
Local purchases	1,500,000	210,000
Import VAT (customs)	2,000,000	280,000
Foreign services (reverse-charge)	200,000	28,000
Total Input	3,700,000	518,000
Excess input c/f		98,000

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Section 5 — Tier 1 rules (compressed)

Rate assignment:

• 14% standard: most goods and services
• 5%: selected equipment and machinery (check ETA reduced-rate schedule)
• 0%: exports of goods with customs declaration, services exported to non-residents consumed outside Egypt, international transport
• Exempt: financial services, insurance, medical services by licensed practitioners, educational services, residential rent, public transport (ENR, metro)

Input credit:

• Credit allowed on all taxable purchases for taxable business activities
• No credit on exempt purchases (financial services, insurance)
• Reverse-charge on imported services: output and input net to zero for fully taxable businesses
• Import VAT paid at customs: claim as input in same month's return with customs declaration
• e-Invoice requirement: from October 2020 ETA made e-invoice mandatory — invoices without valid ETA UUID have contested input credit eligibility

Filing mechanics:

• File monthly via ETA online portal by last day of following month
• All B2B sales require ETA e-Invoice (UUID-stamped) transmitted to ETA in real time
• Excess input VAT carries forward; refunds available for exporters after ETA audit

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Section 6 — Tier 2 catalogue (genuinely data-unknowable items)

Item	Why unknowable	What to ask
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."
Mixed-use property rent	Commercial (14%) vs residential (exempt)	"Is the lease for commercial or residential use? Provide contract."
Export qualification	Whether service consumed outside Egypt	"Where is the customer? Evidence of offshore service consumption?"
Foreign digital service	B2B (reverse-charge) vs B2C — determines who accounts	"Is buyer an Egyptian TRN-registered entity?"
Vehicle purchase	Business vs personal — determines input credit eligibility	"Is this vehicle registered in the company's name for business use?"
Entertainment	Must prove business purpose for input credit	"List attendees and business purpose."
e-Invoice validity	Old paper invoices may not qualify for input credit post-mandate	"Confirm supplier is ETA e-Invoice registered — provide UUID reference."

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Section 7 — Excel working paper

Columns: Date | Supplier/Customer | TRN | ETA Invoice UUID | Net (EGP) | VAT Rate % | VAT (EGP) | In/Out | Zero-rated? | Exempt? | Tier 2 flag | Notes

Tab structure:

1. Output_Sales — all sales by rate
2. Input_Purchases — all purchases with VAT credit
3. Import_Customs — import VAT paid at customs
4. ReverseCharge_Foreign — foreign services
5. VATSummary — monthly return totals
6. Tier2_Items — awaiting client response

Key formula:

Net_VAT = Total_Output_VAT - Total_Input_VAT - Prior_Excess_Credit

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Section 8 — Bank statement reading guide

CIB format

Date        : 15/04/2025
Transaction : Credit Transfer
Description : COMPANY NAME — INV-2025-041 — SERVICE DESCRIPTION
Amount      : +EGP 570,000.00
Balance     : EGP 2,570,000.00

NBE (National Bank of Egypt) format

15/04/2025  |  Incoming Transfer  |  COMPANY NAME  |  REF: INV-041  |  +570,000.00 EGP

Key patterns:

• EGP number format: Comma = thousands; period = decimal (EGP 570,000.00)
• Foreign Currency Credit: Foreign payment — check for export zero-rate or reverse-charge
• Customs Payment: Import duty + VAT — claim VAT as input with customs declaration
• SWIFT/Foreign Payment: May trigger reverse-charge on imported services

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Section 9 — Onboarding fallback

When client cannot provide ETA e-Invoices for all transactions:

1. Use bank statement amounts as VAT-inclusive totals and back-calculate:
   • Net = Total ÷ 1.14 | VAT = Total − Net
2. Apply conservative defaults: 14% output; 0% input credit without ETA e-Invoice UUID
3. Flag all items without e-Invoice UUID in Tier2_Items tab
4. Issue data request listing missing invoice references
5. Warn client: ETA can disallow input credit for invoices without valid UUID — systemic risk if supplier not e-Invoice registered

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Section 10 — Reference material

Resource	Reference
ETA e-Invoice portal	https://invoicing.eta.gov.eg
ETA main portal	https://www.eta.gov.eg
VAT Law No. 67 of 2016	ETA website — legislation section
VAT Executive Regulations	Ministerial Decree 2017
ETA e-Invoice mandatory rules	ETA Decree 2020/2021 — phased rollout
Reduced rate schedule	Annex to VAT Law — ministerial updates

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Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.

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