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Minister of Finance: amending some provisions of the executive regulations of the Value Added Tax Law

Written by: Fathi Al-Sayeh

issued by Dr. Mohamed Moait, Minister of Finance A decision to amend some provisions of the executive regulations of the value-added tax law, which included defining the controls and procedures for benefiting from the exemptions established in the recent amendments to the value-added tax law, which relate to services affecting the lives of citizens, and sectors aimed at supporting industry and stimulating production and growth, taking into account the social dimension. In light of the global economic challenges. Machinery and equipment imported from abroad or purchased from the local market for factories and production units for use in industrial production, so that the industrial producer submits to the competent customs a document approved by the competent technical authority, that these machines and equipment are imported from abroad or purchased from the local market for use in industrial production licensed for the factory or the unit Productive, and if the import of machinery and equipment is for the purpose of trading, the importer must submit to the competent customs documents proving the import of the industrial producer to be used in the industrial production licensed for the factory or production unit.

The suspension of tax payment shall be for a period of one year from the date of release of machinery and equipment from customs or purchase from the local market, and it is permissible for justified reasons acceptable to the interest to extend this period for another period or periods provided that the total additional periods do not exceed one year. As a maximum, if it is proven to the Authority that these machines and equipment were used in industrial production during this period, they will be exempted from this tax, and they will be waived immediately after the start of production.

The executive regulations included the procedures for benefiting from the incentives prescribed by law. To encourage investment in economic zones of a special nature by not loading the goods or services received for this project It is subject to the value-added tax, as it is subject to tax at the “zero” rate what is imported from the local market by the projects of regions, cities, free markets and economic zones of a special nature of goods and services necessary to carry out the licensed activity within those places, with the exception of passenger cars, provided that the registered seller presents The Tax Authority has a copy of the invoice for the sale of the goods exported to those places specifying the type, quantity, and value, or a copy of the returned service contract approved by the General Authority for Investment or the General Authority for the Economic Zone, and a letter issued by the General Authority for Investment or the General Authority for the Economic Zone sealed with the seal of the Republic emblem stating that these goods And the services are necessary to carry out the licensed activity for the project inside those places, and a copy of the export certificate or the unified release permit that includes detailed data on the nature of the exported commodity, indicating the completion of the export during the tax period, and this copy must be approved by the customs, and sealed with the seal of the Republic’s emblem.

It is also subject to tax at the “zero” rate what is imported from abroad by the projects of regions, cities, free markets and economic zones. Goods and services of a special nature necessary to carry out the licensed activity within those places, in accordance with the customs regulations followed in this regard, with the exception of passenger cars.

The executive regulations specified the registration procedures for the simplified supplier registration system for a non-resident person who is not registered with the tax authority, who performs taxable services for a person who is not registered inside the country, and who does not carry out an activity through a permanent establishment in Egypt, in the manner that contributes to In subjecting e-commerce transactions to tax through this simplified system, instead of the system based on appointing a legal representative, in line with international standards and requirements of foreign companies, and consistent with e-commerce applications.

The executive regulations stipulate obligating this non-resident and unregistered person to submit an application for registration in the simplified supplier registration system on the Egyptian Tax Authority’s electronic portal, or his representative, on the prescribed form. data and notify the applicant via e-mail, in case they are not fulfilled; To complete it, and then issue a registration number for this non-resident person, and a registration certificate in the specified form, and he will be notified of that.

included Implementing Regulations Procedures for benefiting from facilitating tax refunds for foreigners leaving the country to activate incoming marketing tourism and urging them to acquire Egyptian products upon their return to their country. Those whose stay in Egypt did not exceed three months have the right to recover the tax previously paid to the registered seller for his purchases of taxable goods, provided that the value is not less than His purchases are in one invoice for 1,500 pounds, so that his purchases are taken out of the country with him or by any other means, provided that the purchased goods are presented to the customs officer in charge at the customs port to inspect and match them on the original paper or electronic purchase invoice and the prescribed tax refund form