Google to impose 14% VAT on services in Egypt starting July

Google to impose 14% VAT on services in Egypt starting July

Google has notified its users of imposing a 14 percent value-added tax on its electronic services in Egypt, starting July, in implementation of the Ministry of Finance’s decision to subject non-resident service providers to value-added tax.

An official estimated that this tax would garner more than US$64 million in the first year, and rise gradually over the coming years.

Finance Minister Mohamed Maait announced, in January, amendments to the executive regulations of the value-added tax law, to subject e-commerce transactions to tax through a simplified system, in accordance with international standards and requirements of foreign companies.

Google will start collecting value-added tax on the electronic services it provides to people in Egypt who are not registered for taxation, in accordance with the Ministry of Finance’s recent amendments to the executive regulations of the value-added tax law to subject non-resident companies or persons to a 14 percent value-added tax, the advisor to the head of the Egyptian Tax Authority Saeed Fouad said.

The tax is imposed on services or goods provided to beneficiaries in Egypt who are not registered with the tax authority system, he added.

Egypt aims to collect tax revenues worth LE1.5 trillion ($49.5 billion) during the fiscal year 2023/2024, which begins in early