The Clap
The Minister of Finance announced some of the changes that will be made to the value-added tax (VAT) regarding exemptions from its implementation
Key Adjustments
- Exemption of machines and equipment imported from abroad or purchased from the local market, which will be used in industrial production, will be exempted from VAT, provided that proof of this is presented.
- Goods and services for projects in free zones will be exempted from VAT, with the aim of stimulating investment in these zones.
- Facilitating the refund of VAT for tourists who buy Egyptian products before traveling, since its normal for a tourist who left Egypt 3 months ago to recover the VAT paid on purchased products.
So What
These amendments are not in line with the tax policies that the IMF set in place, whose purpose was to collect the largest amount of revenue for the country.
