The standard VAT rate in Egypt is 14%; some goods and services have other rates or are exempt. The calculation goes two ways:
1. Net price → VAT-inclusive price
Inclusive price = price × 1.14
Example: a device at EGP 10,000 net: VAT = 1,400, inclusive price = EGP 11,400.
2. Inclusive price → the VAT inside it
Multiplying 11,400 by 14% gives 1,596, which is wrong. The right way:
- Net price = inclusive ÷ 1.14 = 11,400 ÷ 1.14 = 10,000
- VAT = inclusive − net = 1,400
3. With a discount
Subtract the discount first, then calculate VAT on the discounted price. EGP 10,000 with a 10% discount: net 9,000, VAT 1,260, total 10,260.
Who must register for VAT?
According to the Egyptian Tax Authority FAQ, registration is mandatory once annual sales reach EGP 500,000, and some activities must register regardless of turnover, such as importers, exporters and distribution agents. Registered businesses issue electronic tax invoices to companies and electronic receipts to final consumers according to their rollout phase.
Rules change, so confirm your situation with your accountant before deciding.