Egypt - The Egyptian Tax Authority (ETA) has streamlined procedures to enhance the investment environment and support investor-driven development.

Rasha Abdel Aal, the head of ETA, announced Wednesday that value-added tax (VAT) refunds will now be processed more efficiently, with a focus on bolstering the local investment climate. It is important to note that VAT refunds will only be considered for electronic invoices.

Abdel Aal stated that VAT refund procedures will be completed within a maximum of 45 days following document submission. The ETA is dedicated to reviewing tax refund applications, provided they are submitted with all required documentation, within five working days. Should any documents be missing, applicants will be notified and given up to ten working days to provide the necessary information.

Taxpayers are encouraged to submit complete documentation for VAT refunds to prevent application denial. Eligible cases for VAT refunds include:

  • VAT on exported goods and services that have been paid or charged.
  • Incorrectly collected VAT.
  • VAT on buses and passenger cars used as part of a licensed business activity.
  • VAT incurred by non-resident individuals registered in the simplified supplier system for in-country activities.

Furthermore, VAT refunds may be applicable for:

  • Input tax credits outstanding for over six consecutive tax periods due to discrepancies between input and output tax.
  • Accumulated tax credits on inventory held by the registrant.
  • Sales to legally exempt entities entitled to deduct input tax on taxable goods and services.

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