The Egyptian Tax Authority has named the Egyptian General Petroleum Corporation as the sole party liable to pay and remit the tax.
The Egyptian Tax Authority issued Executive Instructions No. 53 of 2026 on 9 October 2026 to regulate the taxation of natural gas under the schedule tax provision of the Value-Added Tax Law. The instructions implement Law No. 149 of 2026, which removed the exemption for natural gas and set the schedule tax at EGP 20 per 1,000 cubic feet.
Natural gas exploration, extraction and production companies must register with the authority for VAT purposes, regardless of their sales or production volumes. They and the Egyptian Natural Gas Holding Company (EGAS) must issue electronic invoices for all gas sales and submit monthly returns.
The Egyptian General Petroleum Corporation (EGPC) alone must pay and remit the schedule tax on its own purchases, those of EGAS and its own sales of natural gas. Amounts that gas companies receive from EGAS for exploration, development and well-operation expenses are exempt from VAT.
Tax expert John Saad said the levy is a fixed-amount schedule tax, not a proportional tax at 14% of the value of gas, and urged companies in the gas trading chain to review their measurement, invoicing and accounting systems.
