Customs Authority: Higher VAT Charges on Gold to Take Effect Starting July 2026

The Egyptian Customs Authority has issued Tariff Circular No. (33) of 2026 regarding the update of average manufacturing values ("making charges") applied to platinum, gold, silver jewelry, and gemstones. The update comes in accordance with the protocol signed between the Egyptian Tax Authority and the Gold and Silver Traders and Manufacturers Divisions, which governs the procedural rules for collecting taxes on jewelry products.

According to the official circular, the new protocol stipulates a 10% increase in the average making charges applied to locally manufactured gold jewelry. The updated benchmarks will take effect from July 1, 2026, through June 30, 2027, in line with the agreement reached between the Egyptian Tax Authority and the Gold and Silver industry divisions.

The authority stated that the amendment is part of a periodic review of manufacturing benchmarks used for tax assessment purposes, ensuring that they reflect changes in production costs and support the regulation of tax calculation mechanisms for various jewelry products.

Under the new framework, the average making charge for 21-karat gold jewelry has increased to EGP 64.41 per gram, while the average making charge for 18-karat gold jewelry has risen to EGP 96.64 per gram, before the application of the 14% Value Added Tax (VAT).

The decision covers all gold, silver, platinum jewelry, and gemstone products. The updated manufacturing benchmarks are intended solely for tax assessment purposes and do not necessarily reflect actual making charges charged in the marketplace, which may vary among retailers depending on the type, design, and craftsmanship of the jewelry.

The Customs Authority emphasized that VAT is calculated on the profit margin generated from the making charge component after separating the value of the precious metal from the manufacturing cost on the invoice. The tax is then collected based on the approved average manufacturing values at the time of hallmarking and certification.

The authority further stressed that the making-charge benchmarks outlined in the circular are exclusively for taxation purposes under the signed protocol and do not constitute mandatory retail pricing for consumers. Businesses are required to comply with the new benchmarks when applying the tax rules.

In addition, the circular stipulates that the minimum making charge value for imported gold jewelry must be equal to the making charge value applied to locally manufactured products, ensuring consistency in tax assessment standards between domestic and imported jewelry.

The update forms part of the government's broader efforts to regulate the gold and gemstone market, modernize tax collection mechanisms in line with industry developments, and enhance transparency in pricing and trading practices across the sector.