The Egyptian Tax Authority (ETA) addressed the customs Authority regarding the cabinet’s decision to exempt Egyptians arriving from abroad from customs on jewelry and gold bars, and how to deduct the value-added tax (VAT) on workmanship.
According to the provisions of the law, the new value imposed by customs on expatriates with gold, silver and precious stones is the value of value-added tax multiplied by the value of the workmanship.
The workmanship value is decided in a protocol between the Authority and the Gold Division attached to the Customs Authority tariffs circular, whichever is higher.
A letter included an illustration of how to calculate the value of value-added tax on gold jewelry, assuming that the gold jewelry weighs 200 grams.
The calculation of the VAT is as follows:
200 grams x 80 pounds “workmanship value per gram” = 16,000 pounds is the workmanship value.
The value of workmanship is multiplied by 14% (VAT), thus the value of what is paid for 200 grams of gold is 2240 pounds.
Thus, this means that one gram of gold is worth a VAT of 11.20 pounds.
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