Reduced VAT / GST rate

0 / 5 ^[1]

Standard VAT / GST rate

14 ^[2]

High VAT / GST rate

Not applicable

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Note: The VAT law exempts a number of basic goods and services that affect low-income earners (in addition to other exemptions listed within the law). It also includes a reverse-charge mechanism, whereby transactions involving non-residents providing services/royalties to Egyptian resident entities are subject to VAT in Egypt.

0% applies to inbound and outbound products from the free zone companies in terms of General Authority for Free Zones
and Investments 

[1] The standard rate is applicable on all goods and services, except for machinery and equipment used for the purpose of producing a commodity or rendering a service, which are subject to a 5% VAT (although buses and passenger cars are subject to different tax rates).

[2] A 14% Value Added Tax (VAT) has been imposed on desert humidifiers in Egypt. Please note that this tax will only apply to humidifiers that use imported water and will be implemented as per the VAT law enacted by Act No. 67 of 2016, along with any subsequent amendments.