The Egyptian tax administration is looking at ways to inspire more foreign investment
The system of Value Added Tax , VAT Refund in Egypt continues to receive momentum with the Ministry of Finance becoming a major proponent in this pursuit.
Following the effort of the ministry, the Egyptian Cabinet recently approved a proposal to implement a VAT refund system, especially for foreign visitors to the country. This refund system will be implemented through the established Egyptian Joint Stock Company “Global Blue Egypt”.
It was further stated in the recent approval that “Global Blue Egypt” will work alongside the “Global Blue Public” and “Global Blue Holland Private” to implement the VAT refund system.
VAT Refund In Egypt: More on the Recent Development
On approval, the cabinet clarified that the approval is a result of the extant provisions of the Egyptian VAT Law that draws the country closer to achieving Vision 2030 aimed at opening the country up for digital transformation and promoting tourism and shopping.
Recall that in 2021, the country’s Ministry of Finance had hinted that it would facilitate procedures that will see to the refund of VAT to foreign visitors or tourists in Egypt.
In 2021, the ministry stated that the move in addition to the existing measure of waiving tax for goods and commodities to be exported will boost shopping tourism in Egypt, increasing the number of visitors to its shopping centres with a view to making it the global shopping centre.
The modality for the refund will cover those whose purchasing value exceeds EGP 1,500 and will take effect while tourists are departing the Egyptian ports.
Step by Step to VAT Refund
- The tourist is expected to submit an application requesting a refund on items purchased within two months. It is important to note that the tourist can only submit one refund application every month
- The Egyptian system is expected to send automatic email notifications on approval of the application.
- It is advisable that applicant don’t apply for this refund at the point of leaving the country.
- The duration for processing a refund should not take more than 45 days.
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