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    HomeFinancial/RegulationGoogle to start charging 14% VAT on services in Egypt

    Google to start charging 14% VAT on services in Egypt

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    VAT will be added from 1 July, due to regulatory changes by Egypt’s Ministry of Finance announced in March

    Google will add 14% value-added tax (VAT) for its services in Egypt from 1 July, according to local media, citing a letter from Google on 2 June.

    This is to comply with changes to Egyptian law: Google announced it will charge VAT on its “its “e-services unless we have your Egyptian Tax ID number”.

    Ministerial changes

    The Ministry of Finance unveiled regulatory changes to the VAT Law in March, requiring non-resident service providers to charging VAT for services rendered, including digital transactions on “electronic distribution platforms” such as websites, internet portals, e-stores, or other internet marketplaces connecting suppliers with clients.

    It seems likely that streaming platforms like Netflix, Disney Plus, OSN+, and Amazon Prime, and music streaming services such as Spotify, Apple Plus, and Anghami will have to follow Google’s example.

    The Egyptian Tax Authority is inviting non-resident suppliers to register on its simplified system. Although as yet there is no deadline set for registration yet, companies with sales exceeding EGP500,000 (€15,130) are automatically registered.