Egypt: Value Added Tax Law (promulgated by Law No. 67 of 2016) entered into force with grace period

On 8 September 2016, Value Added Tax Law (promulgated by Law No. 67 of 2016) entered into force with a grace period. Entities registered under this law has to align their status within three months (i.e. by 8 December 2016). The law stipulates a standard VAT rate of 14% on goods and services, applicable from the fiscal year 2017/2018 onwards. This rate is applied uniformly across various sectors, with exceptions for specific goods and services, such as machinery used in production, which are taxed at a reduced rate of 5%.