According to Maait, the system aims to ease the VAT refund process for purchased items by foreigners
Egypt will be launching a new value-added tax (VAT) refund system for goods bought by tourists, as Minister of Finance Mohamed Maait announces the formation of a dedicated committee to establishing an electronic system at all sea, air, and land ports to facilitate the process.
According to Maait, the system aims to ease the VAT refund process for purchased items by foreigners.
Related > Tax revenues record EGP 109.8B, up by 18.8% | Finance Ministry
A committee should be formed to oversee the new system, which is meant to encourage tourism and transform resorts into international shopping hubs, Maait noted.
A specialized company will be created, in collaboration with an international company, to manage the e-system at all ports, starting with Sharm El-Sheikh before the end of 2021.
The VAT refunds will be made for purchases worth more than EGP 1,500.
Related > 130+ countries agree to Global Corporate Tax rate | to be implemented by 2023
The announcement comes within the ministry’s framework for modernizing the Egyptian financial and tax system, as well as accelerating the steps to complete the tax and customs automation and modernization project by March 2022.
Some of the current ongoing efforts are the trail launch of new electric receipt system, e-tax collection platform, and a 14% VAT on all online delivery services and highly paid content creators.
