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Decision of the Minister of Finance to amend some provisions of the Executive Regulations of the Uniform Tax Law

vat payment foreign currency amendment 2023

On November 21, 2023, the Minister of Finance issued Decision No. 518 of 2023 amending certain provisions of the Implementing Regulations of the Uniformed Tax law issued by the Minister of Finance Decision No. 286 of 2021.

Decision content

The decision stipulates that a new article (52 bis) should be added to the Implementing Regulations of the Uniform Tax Law, which reads as follows:

  • In the event that the value of the commodity or the performance of the service is paid in foreign currency, the payment of VAT shall be in the same currency, after deducting the value of the tax paid on purchases from the value of the tax collected in foreign currency.
  • The tax provided for in the first paragraph of this article may be paid in Egyptian pounds when the taxpayer submits evidence that he has waived an amount in foreign currency equal to or greater than the tax amount during the month following the revenue generation to one of the banks registered with the Central Bank.

Dr. Mohamed Maait – Minister of Finance confirmed that the collection of value-added tax in foreign currency applies only to goods and services paid for or for in foreign currency to the licensees, explaining that the collection of value-added tax in foreign currency is limited to the entities licensed to deal in foreign currency.

Note that the decision does not apply to import operations, and the tax on production inputs or purchases in the same currency is deducted before payment.

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