Rasha Abdel Aal, head of the Egyptian Tax Authority, announced the release of a comprehensive guide detailing the tax treatment of exported services. The manual clarifies the definition of these services under the Value Added Tax Law and its regulations, outlines taxation location rules, and specifies required documentation. It also features practical examples for common VAT applications.
The Egyptian Tax Authority (ETA) has released a detailed guide to streamline the tax handling of services exported abroad, aiming to support cross-border business stability. This manual accompanies Executive Instruction No. 45 of 2025, which outlines procedures for taxpayers dealing with exported services in line with the Minister of Finance's directives.
The guide specifies a zero VAT rate for remote services provided to clients outside Egypt by domestic suppliers. Exceptions apply to services involving real estate or those needing physical presence of both provider and recipient in Egypt. Abdel Aal stated that "the manual draws on international standards and VAT practices to ensure stability and consistency in cross-border commercial transactions".
She noted that the client's home country might still levy VAT on such remote services under its own regulations. These steps are part of wider initiatives by the Ministry of Finance and ETA to standardize exported service taxation and avoid double VAT on single transactions, fostering trust in Egypt's tax system.