Google announced the start of applying the value-added tax (VAT) on its electronic services in Egypt at a rate of 14%, as of July 1, Google said in an email to its users over the weekend.
"In compliance with local laws in Egypt, starting from July 1, 2023, we will start charging 14% value-added tax on electronic services unless we have your tax registry number," it said.
The Ministry of Finance announced regulatory amendments to the value-added tax law in March, to subject non-resident service providers to value-added tax.
The current VAT law includes all transactions that take place on electronic distribution platforms, including websites, digital portals, online stores and any other markets that link suppliers and customers via the Internet.
It's only a matter of time before VAT reaches other digital services, Mohsen Al-Jayar, director of the Registrar's Assistance Department at the Tax Authority, told Enterprise.
"We want service providers such as Google, Facebook, YouTube and Netflix to register in the VAT system through a simplified registration process," he added.