VAT hits Google services: Google will start charging VAT on its e-services starting 1 July, it said in an email to users over the weekend. “To comply with local laws in Egypt, starting July 1, 2023 we will begin charging a value added tax of 14% on e-services unless we have your Egyptian Tax ID number,” the email said.

What e-services? Google offers a wide range of online services including: YouTube Premium, YouTube Music, Google Play Pass, and Google One. Google also offers advertising services to businesses.

It’s been months in the making: The Finance Ministry first announced the regulatory amendments to the VAT Law in March, subjecting non-resident service providers to VAT. The VAT Law now includes transactions made on “electronic distribution platforms” which includes websites, internet portals, e-stores or other internet marketplaces connecting suppliers with clients.

It’s a matter of time before VAT hits other online services: “We want service providers like Google, Facebook, Youtube, and Netflix to register for VAT through the simplified registration process,” the Egyptian Tax Authority’s director of taxpayer services Mohsen El Gayar told Enterprise. The authority is calling on non-resident suppliers to register via the simplified system; while there is no deadline, companies will automatically be considered registered when their sales surpass the EGP 500k registration threshold.

Your streaming subscription will get more expensive: The law means that international streaming platforms such as Netflix, Disney Plus, OSN+, and Amazon Prime, as well as music streaming services like Apple Plus and Spotify, will soon start charging VAT on their subscription fees.

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