The VAT rate in Egypt
VAT is governed by Law No. 67 of 2016, its executive regulations and their amendments, most recently Law No. 149 of 2026, which restated Article 3 on the rate.
| Item | Rate at the time of writing |
|---|---|
| General rate on goods and services | 14% |
| Machinery, equipment and medical devices used to produce goods or provide services (except buses and passenger cars) | 5% |
| Exempt goods and services | No VAT; only those on the exemption list attached to the law |
| Schedule goods and services | Schedule tax at item-specific rates |
The exemption list is closed: it can only be widened by law. Don't assume your activity is exempt until you find it on the list.
Who must register?
The ETA states that the mandatory registration threshold is EGP 500,000, measured on your combined sales of taxable and exempt goods and services. These businesses register whatever their sales:
- Producers or providers of schedule goods and services.
- Distributors.
- Importers.
- Exporters.
Registration and your tax file are handled through the taxpayer portal on the ETA website. If your business is small, also look at Law No. 6 of 2025 on tax incentives and facilitations for projects with annual turnover of up to EGP 20 million, which may apply to you.
How VAT is calculated
You collect VAT from customers on sales (output tax), pay VAT to suppliers on purchases (input tax), and pay the ETA the difference for each month.
Adding VAT to a price
VAT = price before VAT × 14%
Example: an item at EGP 10,000 before VAT:
- VAT = 10,000 × 0.14 = EGP 1,400
- Invoice total = EGP 11,400
Extracting VAT from an inclusive price
If the price includes VAT: VAT = inclusive price × 14 ÷ 114
Example: EGP 5,700 including VAT → VAT = 5,700 × 14 ÷ 114 = EGP 700; price before VAT = EGP 5,000.
A common mistake is taking 14% of the inclusive price (5,700 × 14% = EGP 798), which overstates the tax. Try both in the VAT calculator with Egypt selected.
Example: a trading company's month
A small household-goods trader in Cairo, September figures before VAT:
| Item | Before VAT | VAT 14% |
|---|---|---|
| Sales | EGP 200,000 | EGP 28,000 (output) |
| Purchases from registered suppliers with valid invoices | EGP 120,000 | EGP 16,800 (input) |
| VAT payable | EGP 11,200 |
The company pays EGP 11,200 for September with its return. If input tax exceeds output tax in a month, the difference carries forward as a credit balance under the rules set by the law.
The monthly return on Form 10
The ETA states that the VAT return "is filed monthly on Form No. 10", and the deadline is within the month after the tax period ends.
| Tax period | Last day to file |
|---|---|
| September | Last day of October |
| October | Last day of November |
| November | Last day of December |
If the last day is an official holiday, the deadline moves to the next working day. For example, the ETA extended the September 2025 return to Sunday 2 November 2025 because 31 October and 1 November were holidays. Watch ETA announcements each month.
What to prepare before filing
- Taxable sales at each rate (14% and 5%) and exempt sales.
- Taxable purchases and imports with their VAT, backed by valid documents.
- Returns and credit and debit notes for the month.
- Any credit balance carried from the previous month.
- A reconciliation against the e-invoices submitted to the ETA system, if your company is required to use it.
Credit balances: when can you claim a refund?
If your input VAT keeps exceeding your output VAT (for example when stocking up for a season or exporting most of your output), you build a credit balance that carries from month to month. Article 30 of the law, as worded after Law 149 of 2026, allows a refund request for a credit balance that has carried for more than four consecutive tax periods, and more than three months is enough for projects under Law 6 of 2025 with annual turnover of up to EGP 20 million. Refunds have conditions and procedures set by the regulations, so review them with your accountant before applying.
A suggested monthly routine
- Close the month's sales and returns in the first two days of the next month.
- Collect purchase invoices and check each one is in your company's name with its tax number.
- Reconcile the VAT in your books with what the ETA system shows, if you are under the e-invoicing mandate.
- Review the return with your accountant, then file and pay a few days before month end, not on the last day.
VAT and e-invoicing
Many registered businesses in Egypt must now issue invoices through the ETA's e-invoicing system, and issue consumer sales through the e-receipt system. That is a separate obligation from the monthly return but closely linked to it; see our guide to Egypt's e-invoicing system. For invoice types in general, read tax invoice vs simplified invoice.
Costly mistakes
- Registering late after reaching EGP 500,000 while continuing to sell without VAT.
- Deducting VAT on invalid documents: receipts without your company's name or invoices from unregistered sellers.
- Mixing up inclusive and exclusive prices in pricing and offers.
- Forgetting returns and credit notes, which inflates reported sales.
- Skipping a monthly reconciliation between your books, stock and the return.
Summary
The general rate is 14%; registration applies at EGP 500,000 (with no threshold for importers, exporters, distributors and schedule goods); the return is monthly on Form 10 within the following month. Calculate VAT on the price before VAT, extract it from inclusive prices with × 14 ÷ 114, and keep a valid document for every purchase whose VAT you deduct.