Google will apply new 14% VAT on its services in Egypt on 1st of July

BY

-

Sun, 04 Jun 2023 - 04:04 GMT

BY

Sun, 04 Jun 2023 - 04:04 GMT

Google will soon begin to apply a new 14 percent value-added tax (VAT) on its services in Egypt starting July 1, local media reported citing a letter from Google on June 2nd.

The USA-based company revealed that it would apply the VAT on July 1st, in accordance with Egyptian law.

Google noted that it will charge the VAT on its “e-services unless we have your Egyptian Tax ID number”.

The Ministry of Finance revealed regulatory amendments to the VAT Law in March, requiring non-resident service providers to begin 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.

Popular international streaming platforms such as Netflix, Disney Plus, OSN+, and Amazon Prime, and music streaming services such as Spotify, Apple Plus, and Anghami are considered non-resident service suppliers and could soon join Google in adopting the new VAT.

The Egyptian Tax Authority is inviting non-resident suppliers to register on its simplified system. Currently, there is no announced deadline for registration, however, companies with sales exceeding LE 500,000 are automatically registered.

 

 
 

 

 

Comments

0

Leave a Comment

Be Social