Egypt VAT Guide for 2026: Rates, Registration & Compliance

Egypt applies a standard 14% VAT to most goods and services, including digital supplies. A reduced 5% rate applies to machinery and equipment used in production, and a separate schedule tax applies to specific listed goods.[1] A 0% rate covers exports, and items such as basic foodstuffs, healthcare, education, and financial services are exempt.[1] The tax authority is the Egyptian Tax Authority (ETA).[1]

Resident businesses must register once annual taxable supplies reach EGP 500,000 [1]. Non-resident vendors supplying remote and digital services to Egyptian consumers register under the ETA simplified vendor regime and remit 14% VAT; where the customer is a VAT-registered Egyptian business, the reverse charge applies and the recipient accounts for the VAT [1].

VAT returns are filed monthly, with the return and payment due within 30 days of the end of each tax period, electronically through the ETA portal.[2] Egypt operates a mature mandatory e-invoicing system: B2B e-invoices have been required from all taxpayers since 2023, and the B2C e-receipt system continues to expand, with only ETA-registered e-documents accepted as valid support for input VAT.[1]

Exports of goods and qualifying services are zero-rated. Basic foodstuffs, healthcare, education, and financial and banking services are exempt.[1] SaaS and digital services supplied to Egyptian customers are taxable at 14%, with a reverse charge available on B2B sales to registered businesses.[3]

Egypt has no US-style resale certificates. A VAT-registered business recovers the input VAT it pays on purchases and imports by deducting it from output VAT on its return, provided the purchases support taxable supplies and valid tax invoices are held [1]. Input VAT tied to exempt supplies is not recoverable. Net VAT payable equals output VAT minus deductible input VAT.

Late or non-filing carries fines from EGP 3,000 to EGP 50,000 within 60 days, rising to between EGP 50,000 and EGP 2,000,000 beyond that, and can be multiplied on repeat offenses.[2] Unpaid VAT accrues additional delay tax, and penalties may be reduced by half if settled before the case reaches the Appeal Committee.[2]

The ETA reviews returns and can open audits, request records, and issue assessments where VAT is under-reported [1]. A taxpayer who disagrees with an assessment may file an objection with the ETA and, if unresolved, escalate to the internal committees and courts set out in VAT Law No. 67 of 2016 [2].

• [1] Egyptian Tax Authority (ETA), VAT on Digital Services and other Remote Services, https://eta.gov.eg/en/digital-services

• [2] Egyptian Tax Authority (ETA), Value Added Tax Law No. 67 of 2016, https://eta.gov.eg/en/content/value-added-tax-law

Verified July 2026 against Egyptian Tax Authority (ETA) guidance.