Egypt’s Tax Authority Raises VAT and Manufacturing Cost Averages on Gold Jewelry Effective July 1, 2025

In a move aimed at enhancing tax transparency and regulating the precious metals market, the Egyptian Tax Authority has announced an increase in the average manufacturing cost ("masna‘iya") and Value Added Tax (VAT) on gold jewelry and precious metals, effective July 1, 2025. This update comes as part of the annual renewal of the protocol signed between the authority and the Federation of Egyptian Chambers of Commerce, represented by the Gold and Silver Jewelry Traders and Manufacturers Divisions.

The adjustments are grounded in the protocol established in 2016, which outlines the mechanism for collecting VAT under Law No. 67 of 2016 and its executive regulations. Under this system, the manufacturing cost serves as the primary tax base for both locally produced and imported jewelry.

The agreement stipulates that VAT shall be calculated at 14% of the average manufacturing cost, which is determined annually through cooperation between the two parties. All manufacturing and trading entities are required to provide the Tax Authority with these averages by no later than July 1 of each year. If no data is submitted, the tax will instead be based on the difference between the declared gold price and the actual retail price.

According to the updated protocol for the fiscal year 2025–2026, the average manufacturing cost for 21-karat gold has been set at EGP 58.56 per gram, with a VAT of EGP 8.20. For 18K and 23.5K gold, the average manufacturing cost is EGP 87.85 per gram, with a VAT of EGP 12.30. Meanwhile, 14K gold is priced at EGP 73.15 per gram, 12K at EGP 65.88, and 9K at EGP 43.92, each with corresponding VAT amounts.

As for silver jewelry, the average manufacturing cost for 925 silver is set at EGP 14.64 per gram, 900 silver at EGP 13.17, and both 800 and 600 silver at EGP 11.70, with VAT amounts ranging between EGP 1.64 and EGP 2.05. For platinum and gemstone-set jewelry, the manufacturing cost is calculated as double that of 18K gold—EGP 175.70—with a VAT of EGP 24.60.

Jewelry adorned with glass or zircon stones is taxed as part of the total weight of the gold or silver piece, using the standard manufacturing cost average for the respective karat. The protocol also applies to gold coins and bullion bars.

For imported jewelry, the tax base is determined by the manufacturing cost assessed by the Customs Authority, including any applicable duties. No additional VAT is levied at the hallmarking stage. If no customs documentation is provided, the tax is calculated based on the difference between the official gold price and the retail price in the domestic market.

The updated protocol reiterates the requirement for workshops, companies, and stores to submit timely tax returns, issue valid VAT invoices, and maintain proper accounting records. The Tax Authority reserves the right to impose VAT based on declared prices in cases of violations or insufficient documentation.

The agreement becomes void if the relevant divisions fail to comply with its terms, making the protocol a flexible and annually renewable arrangement. It allows the Tax Authority to reassess and adapt the taxation framework based on market developments and stakeholders’ commitment.

This revision reflects the state’s broader effort to more accurately regulate the precious metals market—balancing public revenue collection with market stability—while avoiding excessive burdens on end consumers, particularly at a time when gold is increasingly seen as both an investment vehicle and a store of value.