Egypt’s tax authorities issued Instruction No. 78 of 2024, which amends the criteria for applying the 0% value-added tax (VAT) on exported services under Circulars (5) and (6) of 2019.
Instruction No. 78 repeals Circulars 5 and 6 of 2019, where services are classified as exported and eligible for a 0% VAT rate if their benefits are received outside Egypt. Therefore, services such as marketing, whose benefits are realised in Egypt, are subject to the standard VAT rate of 14%.
This change aims to alleviate the tax burden on exported services.
The new ruling goes into effect on 17 November 2024. However, any VAT or scheduled tax collected before the effective date must still be remitted to the ETA within the standard deadlines.
