- VAT collection new system Egypt
- November 12, 2018
- Law Firm: - Office
This has been issued after viewing Article 53 of value-added tax law (VAT) 67/2016, and the decree of the Egyptian Minister of Finance No. 167/2017.
1) Registrants whose activities require the sale of goods or the providing services to the end user directly are obliged to collect the sold good amount or provided service amount via cash collection devices or any other electronic systems.
2) All VAT registrants are obliged to install the above mentioned devices or systems which shall allow the tax authority to obtain and access electronically details of invoices and data.
3) In addition, there should be obligation to obtain customer unified I.D. No. in case of issuing invoices with an amount more than EGP 50,000.
4) Other illustrative instructions should be followed by the tax authority
5) There will be two phases for the above implementation by starting the test phase with no harmful tax impact by the tax authority that will not exceed 6 months. Then there will be actual implementation phase.
This decree has been issued on the 12th of November 2018.
Responsibility and Commitment:Andersen Tax & Legal Egypt’s tax team has prepared this summarized tax report to introduce Decree No.623/2018. Efforts have been combined to produce this report with clear and accurate content however this report aims only to spread general information and should not be treated as a legal document or a document that can be used for decision making, or for issuing specialized consultations. Please contact Andersen Tax & Legal Egypt for tailor made solutions.