Minister of Finance Announces Activating a New Value Added Taxes Refund System Early 2022

Egyptian Minister of Finance, Mr. Mohamed Maait is expecting the implementation of a value-added tax (“VAT”) refund system based on an electronic invoices system, early next year.

After Mr. Maait’s meeting with Egyptian Minister of Trade and Industry Ms. Nevin Gamea, Mr. Maait said in a statement in the press conference that the Ministry of Finance is proceeding with the new implementations of the national project to modernize and automate the tax and customs systems; This contributes to simplifying and digitizing procedures for traders and users.

Mr. Mohamed described how digitization the procedures as aimed by the Ministry will assist in facilitating the business for traders, in a way that helps facilitating the movement of internal and external trade, reduce the time for customs release, and it is scheduled to start the mandatory application of the ACI shipments pre-registration system in order to reduce the costs of the import and export process, and then naturally reduces the prices of goods and services in the markets for users.

Mr. Maait’s emphasized on the Ministry’s keenness to support the Egyptian industry, maximize its contribution to the gross domestic product, and enhance the structure of the national economy, noting that the Ministry of Finance's measures within the framework of the "100 measures to improve the industrial sector In Egypt" includes 26 incentive measures aimed at providing tax, customs and procedural facilities for producers and exporters.

owners of small and medium enterprises.

Ms. Nevin said the improving and devolving the industrial sector is a priority in the current Government’s List, as it increases its contribution to the National Economy and meets the needs of the local market, provides decent job opportunities and increases the competitiveness of the Egyptian product in the local and international markets.

For further information or to discuss the Activation of VAT refund system in more detail, please contact:

Muhammed Abu Daif m.abudaif@tcmglaw.com or Omar Abu Daif o.abudaif@tcmglaw.com