{"id":554013,"date":"2021-12-16T04:04:16","date_gmt":"2021-12-16T04:04:16","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/12\/16\/snacks-arent-getting-the-vat-treatment\/"},"modified":"2021-12-16T04:04:16","modified_gmt":"2021-12-16T04:04:16","slug":"snacks-arent-getting-the-vat-treatment","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/12\/16\/snacks-arent-getting-the-vat-treatment\/","title":{"rendered":"Snacks aren\u2019t getting the VAT treatment"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-01\"><\/a> <strong>Breaking down the VAT Act amendments:<\/strong> Earlier this week, the House of Representatives gave its final approval to amendments to the VAT Act that change up the tax treatment for a handful of services and products, as per a committee <a href=\"https:\/\/ent.news\/2021\/12\/VAT-Act-amendments-committee-report.pdf\">report (pdf)<\/a>. Other new stipulations in the newly-passed amendments:<\/p>\n<p><strong>The big news is in what won\u2019t be subject to the VAT in the final version of the bill, including crackers and sweet pastries.<\/strong> An earlier version of the amendments had proposed subjecting these goods to the 14% VAT, but this was scrapped in light of accelerating inflation, Finance Ministry spokesperson Ragab Mahrous confirmed to Enterprise. These goods will continue to be subject to the 5% schedule tax currently imposed on them. Lawmakers had one eye on inflation as they discussed the bill, with House Planning and Budgeting Committee deputy Yasser Omar previously <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/b4941f29-3f43-4893-b6e3-37b619a65d9a\">telling us<\/a> that they were considering postponing the bill altogether because of inflation.<\/p>\n<p><strong>Other VAT exemptions:<\/strong> A handful of medical supplies \u2014 meds, active substances, vaccines, blood collection bags, birth control methods, and blood and its derivatives \u2014 are all exempt from the tax. The bill also exempts machinery and equipment imported from abroad, production inputs for the paper industry, as well as agricultural products such as seeds, vegetables and fruits produced locally. Civil aircrafts, along with their engines, parts, components and spare parts won\u2019t be subject to VAT, either. Shipping companies also won\u2019t be required to pay VAT on transit fees paid to the Suez Canal Authority.<\/p>\n<p><strong>Office and commercial spaces will be subject to a 1% schedule tax<\/strong> on the rent or purchase value, Mahrous said, confirming previous <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/0809f68c-1e9c-4423-b43e-29da02a8451e\">announcements from the Tax Authority<\/a>.<\/p>\n<p><strong>Ads are subject to VAT \u2014 with some exceptions:<\/strong> Under the bill, the 14% value-added tax will be imposed on fully-finished \u201cbroadcast\u201d advertisements \u2014 advertisements on TV, radio, outdoor billboards and the interwebs \u2014 replacing the 20% stamp tax to which they <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/4b40b507-281a-45c7-932f-5e7f7446a40b\">were previously subject<\/a>. However, the amendments exempt PSA-style ads from the tax, including ads for donations to or medical treatment at government hospitals and institutes; election and job seeking announcements; missing persons announcements; and all ads or announcements that are meant to inform the public about laws or regulations.<\/p>\n<p><strong>Tourists will be able to claim VAT rebates on their way out of the country <\/strong>for any purchases on select items worth more than EGP 1.5k or more (as opposed to the previous EGP 5k threshold for VAT drawbacks).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Breaking down the VAT Act amendments: Earlier this week, the House of Representatives gave its final approval to amendments to the VAT Act that change up the tax treatment for a handful of services and products, as per a committee report (pdf). Other new stipulations in the newly-passed amendments: The big news is in what [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":554014,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7344],"tags":[679,72,276,274,187,69,3094],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-554013","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislation-watch","tag-egyptian-tax-authority","tag-enterpriseam","tag-finance-ministry","tag-house-of-representatives","tag-legislation-watch","tag-tax","tag-vat-act","wpautop","entry"],"acf":{"mongo_id":"dfc67e37-c933-4e2a-ae7a-c3989d612716","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/12\/362.jpg","photo_position":"above","related_issue":[554009],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Snacks aren\u2019t getting the VAT treatment - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/12\/16\/snacks-arent-getting-the-vat-treatment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Snacks aren\u2019t getting the VAT treatment\" \/>\n<meta property=\"og:description\" content=\"Breaking down the VAT Act amendments: Earlier this week, the House of Representatives gave its final approval to amendments to the VAT Act that change up the tax treatment for a handful of services and products, as per a committee report (pdf). Other new stipulations in the newly-passed amendments: The big news is in what [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2021\/12\/16\/snacks-arent-getting-the-vat-treatment\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2021-12-16T04:04:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2021\/12\/362.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/12\/16\/snacks-arent-getting-the-vat-treatment\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/12\/16\/snacks-arent-getting-the-vat-treatment\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Snacks aren\u2019t getting the VAT treatment\",\"datePublished\":\"2021-12-16T04:04:16+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/12\/16\/snacks-arent-getting-the-vat-treatment\/\"},\"wordCount\":407,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/12\/16\/snacks-arent-getting-the-vat-treatment\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2021\/12\/362.jpg?fit=%2C&ssl=1\",\"keywords\":[\"Egyptian Tax Authority\",\"EnterpriseAM\",\"Finance Ministry\",\"House of Representatives\",\"Legislation Watch\",\"tax\",\"VAT Act\"],\"articleSection\":[\"LEGISLATION WATCH\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/12\/16\/snacks-arent-getting-the-vat-treatment\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2021\/12\/16\/snacks-arent-getting-the-vat-treatment\/\",\"name\":\"Snacks aren\u2019t getting the VAT treatment - 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Amendments to the VAT Act that would impose VAT on non-residential property and some snack foods are now with the House of Representatives after going through Cabinet, the local press reports. The changes would apply a 14% VAT to the rent and purchase\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":627190,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/07\/25\/major-amendments-to-the-tax-code-coming-during-next-legislative-term\/","url_meta":{"origin":554013,"position":1},"title":"Major amendments to the tax code coming during next legislative term","author":"enterpriseam admin","date":"25 July 2018","format":false,"excerpt":"EXCLUSIVE- Major amendments to the tax code coming during next legislative term: The Finance Ministry plans to introduce a package of new legislation when the House of Representatives reconvenes from its summer recess, Finance Minister Mohamed Maait told Enterprise. Topping the list of laws are amendments to the tax code\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":572389,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/06\/23\/egypts-cabinet-economic-committee-approves-proposed-vat-tax-act-amendments\/","url_meta":{"origin":554013,"position":2},"title":"Egypt\u2019s Cabinet Economic Committee approves proposed VAT Tax Act amendments","author":"enterpriseam admin","date":"23 June 2020","format":false,"excerpt":"LEGISLATION WATCH- The Cabinet economic group signed off yesterday on proposed amendments to the VAT Tax Act, which now go to cabinet as a whole for approval, according to a statement. The proposed legislative changes, which the Finance Ministry finalized last week, would subject most commercial advertising to the value-added\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":602672,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/04\/03\/finmin-looks-to-tax-the-living-daylights-out-of-social-media-ads-e-commerce-players\/","url_meta":{"origin":554013,"position":3},"title":"FinMin looks to tax the living daylights out of social media ads, e-commerce players","author":"enterpriseam admin","date":"3 April 2019","format":false,"excerpt":"EXCLUSIVE- FinMin looks to tax the living daylights out of social media ads, e-commerce players: The Finance Ministry is moving ahead with plans to impose a mix of VAT, income, stamp, and development taxes on social media and e-commerce platforms and internet search ads, a senior government official told Enterprise.\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/2\/2118.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":667596,"url":"https:\/\/enterpriseam.com\/egypt\/2025\/06\/30\/house-approves-amendments-to-vat-law-on-select-items\/","url_meta":{"origin":554013,"position":4},"title":"House approves amendments to VAT Law on select items","author":"enterpriseam admin","date":"30 June 2025","format":false,"excerpt":"The amendments are set to affect the prices of construction and contracting services, crude oil, cigarettes, and alcoholic beverages","rel":"","context":"In &quot;Tax&quot;","block_context":{"text":"Tax","link":"https:\/\/enterpriseam.com\/egypt\/category\/tax\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2024\/11\/466.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":561718,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/19\/your-office-rent-wont-be-hit-with-vat\/","url_meta":{"origin":554013,"position":5},"title":"Your office rent won\u2019t be hit with VAT","author":"enterpriseam admin","date":"19 April 2021","format":false,"excerpt":"Office + commercial spaces aren\u2019t going to be subject to 14% VAT: Proposed amendments to the VAT Act would impose a 1% schedule tax on the rent or purchase of commercial and administrative property \u2014 meaning your office or factory won\u2019t be subject to the full 14% VAT as was\u2026","rel":"","context":"In &quot;LEGISLATION WATCH&quot;","block_context":{"text":"LEGISLATION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/legislation-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/4\/184.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/554013","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=554013"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/554013\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/554009"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/554014"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=554013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=554013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=554013"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=554013"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=554013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}