Finance Minister Suspends VAT on Imported Equipment, Machinery for Factories

The Ministry of Finance Mohamed Maait decided to suspend the collection of value-added tax (VAT) on machinery and equipment, especially production lines imported from abroad for factories and production units used in industrial production.

The decision indicated that in the case of import for the purpose of profit, the importer must submit to the competent customs the specified documents, so that the suspended tax is 5% of the value.

After the seller submits the approved supply contract, activity licenses and all the documents referred to, the full deposit amount is refunded to the importer and the tax is suspended for machines and equipment sold in the local market

Whereas if any of the required documents are lost, a 14% tax will be collected with the necessary adjustments made when providing proof of the sale of the industrial product or service provider according to a number of procedures.