Egypt: Decree no. 160 including VAT guidelines for digital services and other remote services provided by non-residents entered into force

On 22 June 2023, the Minister of Finance's Decree no. 160 of 2023 issuing the value-added tax (VAT) guidelines for digital services and other remote services provided by non-residents entered into force. The guidelines require non-resident service providers and electronic distribution platform (EDP) operators offering remote services to Egyptian customers to register and remit VAT, with a standard rate of 14% and 10% for professional and consultancy services. Business-to-business (B2B) transactions follow the reverse-charge mechanism, while business-to-consumer (B2C) transactions involve direct or EDP registration under a simplified regime. VAT can be paid in Egyptian Pounds (EGP), US Dollars (USD), and additional currencies from December 2023, but input VAT recovery is limited to refunds. A threshold of EGP 500’000 applies for registration, except for professional and consultancy services, which must register regardless of turnover. Noncompliance may result in the Egyptian Tax Authority (ETA) enforcing registration, assessing liabilities, or restricting market access under Law No. 3 of 2022. Businesses must address invoicing, records, and VAT returns to comply.