Google to apply new 14% VAT on services rendered in Egypt

The Ministry of Finance revealed regulatory amendments to the VAT Law in March, requiring non-resident service providers to begin charging VAT for services rendered

By: Business Today Egypt

Sun, Jun. 4, 2023

In accordance with Egyptian law, Google has announced it will start charging a 14% value-added tax (VAT) on its services in Egypt starting July 1, reported local media, citing a letter from Google on June 2nd.

Google noted that it will charge the VAT on its “e-services unless we have your Egyptian Tax ID number”.

The Ministry of Finance revealed regulatory amendments to the VAT Law in March, requiring non-resident service providers to begin charging VAT for services rendered.

These include digital transactions on “electronic distribution platforms” such as websites, internet portals, e-stores, or other internet marketplaces connecting suppliers with clients.

Popular international streaming platforms such as Netflix, Disney Plus, OSN+, and Amazon Prime, and music streaming services such as Spotify, Apple Plus, and Anghami are considered non-resident service suppliers and could soon join Google in adopting the new VAT.

The Egyptian Tax Authority is inviting non-resident suppliers to register on its simplified system. Currently, there is no announced deadline for registration, however, companies with sales exceeding EGP 500k are automatically registered.