Egypt VAT & Schedule Tax Calculator
Accurately calculate Egyptian Value Added Tax (VAT) liability for corporate filings and monthly ETA declarations. Features 14% standard VAT, 5% industrial machinery concession, Schedule Tax (الضريبة الجدولية) tiers, input tax recovery offset, and bidirectional (Net-to-Gross / Gross-to-Net extraction) computation.
Transaction & Return Inputs
Microsecond EngineEgyptian Tax Authority (ETA) Summary
Law 67/2016 Compliant| Category | Taxable Base (EGP) | Rate | Tax Amount (EGP) |
|---|---|---|---|
| Standard Taxable Supplies | EGP 500,000.00 | 14.0% | EGP 70,000.00 |
| Industrial Machinery Supplies | EGP 50,000.00 | 5.0% | EGP 2,500.00 |
| Zero-Rated & Exempt Sales | EGP 80,000.00 | 0.0% | EGP 0.00 |
| Schedule Tax Supplies | EGP 0.00 | 0.0% | EGP 0.00 |
| Total Output Tax Generated | EGP 72,500.00 | ||
| Less: Certified Input VAT Credit on Purchases | − EGP 45,000.00 | ||
| Net Payable to Egyptian Tax Authority (ETA) | EGP 27,500.00 | ||
Regional Benchmark: Egypt VAT vs. GCC & Middle East Consumption Taxes
The table below provides a comprehensive comparison of Value Added Tax regimes across Egypt and GCC jurisdictions, highlighting standard tax rates, industrial concessions, and commercial registration thresholds.
| Country & Authority | Standard VAT Rate | Industrial Machinery Rate | Mandatory Registration Threshold | Filing Frequency | Reverse Extraction Divisor |
|---|---|---|---|---|---|
| Egypt 🇪🇬 (ETA) | 14.0% | 5.0% (Suspended / Refundable) | EGP 500,000 / year | Monthly (Form 10) | Gross ÷ 1.14 |
| Saudi Arabia 🇸🇦 (ZATCA) | 15.0% | 15.0% Standard | SAR 375,000 / year | Monthly or Quarterly | Gross ÷ 1.15 |
| United Arab Emirates 🇦🇪 (FTA) | 5.0% | 5.0% Standard | AED 375,000 / year | Quarterly (or Monthly) | Gross ÷ 1.05 |
| Bahrain 🇧🇭 (NBR) | 10.0% | 10.0% Standard | BHD 37,500 / year | Quarterly or Monthly | Gross ÷ 1.10 |
| Oman 🇴🇲 (OTA) | 5.0% | 5.0% Standard | OMR 38,500 / year | Quarterly | Gross ÷ 1.05 |
| Qatar 🇶🇦 & Kuwait 🇰🇼 | 0.0% (Pending) | N/A | Not Implemented | N/A | N/A |
Statutory Rules & Compliance Guide: Egypt VAT Law No. 67 of 2016
The Egyptian Value Added Tax framework functions multi-stage consumption tax levied on each stage of the supply chain with input credit recovery. Key statutory mechanisms include:
Standard 14% Rate & Base of Assessment
Law No. 67 of 2016 establishes the baseline VAT rate at 14%. The taxable base equals the total monetary consideration agreed upon between the parties, inclusive of any related transport, packaging, or supplementary charges, and after deducting unconditional trade discounts shown on the face of the electronic tax invoice.
5% Industrial Equipment Concession
Under Law No. 3 of 2022 amendments, machinery, apparatus, and production equipment utilized in industrial manufacturing benefit from a reduced 5% VAT rate. Importers and manufacturers can also obtain temporary customs release with suspended VAT payment until actual industrial operation commences, supporting domestic capital investment.
Input Tax Credit & E-Invoicing (الفاتورة الإلكترونية)
To claim recoverable input tax on monthly Form 10 declarations, Egyptian companies must ensure all supplier purchases are verified through the Egyptian Tax Authority e-Invoicing and e-Receipt online portals. Paper invoices no longer qualify for input VAT deductions under current ETA circulars.
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| Statutory Component / Legal Deduction Item | Calculated Amount (EGP) |
|---|---|
| Primary Net / Statutory Payable Amount | 0.00 EGP |
Frequently Asked Questions (Egypt Value Added Tax)
What is the standard VAT rate in Egypt under Law No. 67 of 2016?
The standard Value Added Tax (VAT) rate in Egypt is 14% on all taxable goods and services, by Law No. 67 of 2016 and amended by Law No. 3 of 2022. It applies to all commercial transactions unless explicitly subject to a reduced rate, Schedule Tax, or statutory exemption.
What is the 5% reduced VAT rate on industrial machinery in Egypt?
Under Article 3 of Law No. 67/2016 and Law No. 3/2022 amendments, machinery and equipment (including production lines and spare parts) used in industrial production of goods or services are subject to a preferential reduced VAT rate of 5%. Furthermore, VAT payment can be suspended for up to one year (extendable) until commercial production commences, at which point the VAT may be refunded.
What is the Schedule Tax (الضريبة الجدولية) in Egypt?
Schedule Tax is an excise-style tax imposed on specific goods and services listed in the schedules attached to Law No. 67/2016. Rates vary from 1% to over 50% (e.g., 5% on professional consulting services, 8% on mobile telecommunications, 5% on construction contracting). Depending on the classification, some products are subject to Schedule Tax alone, while others are subject to Schedule Tax plus the standard 14% VAT.
What is the mandatory VAT registration threshold in Egypt?
Under Egyptian tax law, commercial and industrial enterprises must register for VAT with the Egyptian Tax Authority (ETA) once their annual taxable sales turnover reaches or exceeds EGP 500,000. However, businesses dealing in Schedule Tax goods or services, importers, and exporters must register immediately, regardless of annual turnover volume.
How does input VAT recovery work on monthly ETA returns?
Registered taxpayers are entitled to deduct recoverable input VAT paid on business-related operational purchases and capital expenditures from the output VAT collected from customers during the monthly tax period. If input VAT exceeds output VAT, the surplus is carried forward credit or refunded in accordance with ETA executive regulations.