The batch of
amendments to the value-added tax (VAT) law does not include new taxes on
commodities bought online or purchased through traditional media, Minister of
Finance Mohamed Maait said in a statement on Wednesday.
Maait clarified that VAT has been applied on all commodities and services purchased from the Egyptian market since the VAT law came into effect in 2016. He added that commodities purchased online (e-commerce) are subject to the VAT law and the tax is collected from the companies directly, for non-resident companies, the VAT is collected through Egypt’s Customs Authority.
“The proposed amendments are related to developing the mechanism by which VAT is collected from non-resident companies for the customs authority directly for an easy and effective process,” Maait added.
Maait also denied imposing taxes on Internet users, he stated that the new collecting system has been designed in accordance with international standards, the foreign companies and e-commerce application requirements.
Source: Al-Ahram Online
