Egypt Opens Doors to Digital Growth — Foreign Platforms Must Register Under Clear VAT Rules

Introduction: Time for Action — VAT Guidelines Are Already Effective

The Egyptian Tax Authority (ETA) has officially published comprehensive Value-Added Tax (VAT) Guidelines for digital and remote services provided by non-resident vendors. These Guidelines, based on Ministerial Decree No. 160 of 2023, came into effect on 22 June 2023. They outline clear obligations for foreign service providers offering digital content or professional services to Egyptian consumers through websites, applications, or social media platforms.

The framework is already active, and now is the time for non-resident platforms to register and ensure compliance.

VAT Is Due in Egypt on Digital Services

According to the published Guidelines, any non-resident vendor who provides digital services to customers located in Egypt must pay VAT in Egypt. Remote services are defined broadly, including:

• Digital content (e.g., streaming, downloads)

• Online games and mobile applications

• Software supply and licensing

• Website development and publishing

• Professional services such as legal, consulting, or accounting services

The scope reflects modern business models and ensures that all relevant foreign providers are brought into the VAT system fairly.

B2B vs. B2C Supplies: Understanding the Difference

The VAT treatment differs depending on the type of customer:

Business-to-Business (B2B): If the Egyptian customer is a VAT-registered business, they are responsible for reporting and paying VAT under the reverse charge mechanism. The non-resident vendor has no VAT obligation in this scenario.

Business-to-Consumer (B2C): When services are provided to individual consumers or non-registered entities, the non-resident vendor must register, charge, and remit VAT in Egypt. This applies whether services are sold directly through the vendor’s own platform or through an Electronic Distribution Platform (EDP).

Simplified VAT Registration for Foreign Providers

To make compliance easier, ETA has launched a simplified registration regime on its website to make compliance easier. Under this system:

• Registration is required if the vendor’s turnover in Egypt exceeds EGP 500,000 in any 12 months.

• Registration is mandatory regardless of turnover for professional and consultancy services, subject to the reduced VAT rate.

• Once registered, vendors and EDPs can file simplified returns and remit VAT electronically.

• Deregistration is possible if the vendor ceases taxable activity in Egypt.

• A detailed user demo is also available on the ETA website to guide vendors through the account creation process.

Technical Infrastructure: API and Digital Support

ETA has implemented an API access process to facilitate real-time compliance and integration. Vendors can request credentials from the ETA to access the verification system, ensuring accuracy in validating tax details and classifying transactions correctly.

Managing UINs: A Key Compliance Element

For Egyptian customers, the ETA offers guidance on acquiring and managing Unique Identification Numbers (UINs). These are valid for one year and must be revalidated regularly. If the Tax Registration Number (TRN) and UIN are not appropriately validated, the transaction may be classified as B2C, making it subject to the standard 14% VAT and possible penalties.

• Invoicing, Records, and Additional Obligations

• The Guidelines also cover other obligations such as:

• Issuing proper invoices

• Keeping detailed records

• Handling VAT refunds

• Understanding which services are exempt, as listed in the appendix

ETA also provides a Frequently Asked Questions (FAQ) section to support non-resident vendors in their compliance journey.

Conclusion: A Timely Opportunity to Join Egypt’s Digital Tax System

The ETA has taken concrete steps to provide a clear, simplified, and digital-friendly VAT framework for non-resident service providers. With the rules already in force, foreign platforms operating in Egypt’s growing digital market are encouraged to register without delay.

By taking proactive steps now, platforms not only avoid legal risks and penalties but also demonstrate their commitment to transparency and international tax standards. The Egyptian tax system is opening its doors to global digital businesses — and offers the tools and clarity needed for smooth, successful compliance.