Tax Authority to exempt exporters from cargo services VAT

EXCLUSIVE- Tax Authority exempts exporters from paying VAT on shipping services: The Tax Authority has issued a decree that will exempt shipping companies from charging and remitting VAT from exporters, Tax Authority boss Abdel Azim Hussein tells Enterprise. The decision applies to all companies providing shipping services via land, air and sea. Exporters will need to present export papers to the shipping company in order to become VAT exempt.  A copy of the decree is available here (jpg).

Background: The government wants to add around 500k new VAT taxpayers by 2020 and raise VAT revenues to EGP 364.6 bn in the next fiscal year, from EGP 312 bn currently. The government will introduce a new export subsidies strategy in the coming fiscal year that aims to increase the value of exports to USD 55 bn within the coming five years, from USD 24.8 bn currently.