{"id":574833,"date":"2020-09-23T04:13:28","date_gmt":"2020-09-23T04:13:28","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2020\/09\/23\/ads-are-still-exempt-from-vat-but-not-stamp-tax-and-vat-on-production-inputs\/"},"modified":"2020-09-23T04:13:28","modified_gmt":"2020-09-23T04:13:28","slug":"ads-are-still-exempt-from-vat-but-not-stamp-tax-and-vat-on-production-inputs","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2020\/09\/23\/ads-are-still-exempt-from-vat-but-not-stamp-tax-and-vat-on-production-inputs\/","title":{"rendered":"Ads are still exempt from VAT, but not stamp tax and VAT on production inputs"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-07\"><\/a> <strong>Broadcast ads are<\/strong><strong> exempt from VAT<\/strong><strong>, but subject to stamp tax and VAT on<\/strong><strong> production inputs: <\/strong>Intermediary goods and services used to produce ads are subject to a 14% value-added tax (VAT), the Tax Authority said in <a href=\"https:\/\/ent.news\/2020\/9\/VAT-on-advertising.pdf\">a directive (pdf)<\/a> to clarify how tax legislation treats ads. The cost incurred by an advertiser to broadcast fully-finished ads, meanwhile, are VAT-exempt and subject to a separate 20% stamp tax. This is not a new decision, but removes confusion or lack of clarity on the tax treatment of ads, Mohsen El Gayar, director of Taxpayer Services at the Tax Authority, told Enterprise.<\/p>\n<p><strong>What was the confusion about? <\/strong>The Tax Authority treats advertisements as an end product created through the integration of several goods and services, El-Gayar said. Outdoor ads, for instance, involve an advertising agency paying the state or a property owner to rent billboards, creating a large-scale print, and paying for services to have the print installed. A similar process applies to video and TV advertising and print ads in newspapers, with several intermediate steps including shooting videos, animation, and design and consulting services. All of those processes are subject to VAT, which is remitted by a seller of any mid-way good or service. Broadcasting the ad itself \u2014 or the fee paid to book airtime or slots in a magazine or outdoor \u2014 is VAT-exempt as it\u2019s already subject to a separate, indirect stamp tax.<\/p>\n<p><strong>This tax treatment will remain in place until an in-the-works overhaul to the VAT Act that would apply the tax to both ad inputs and final products is complete.<\/strong> The overhauled bill would scrap the indirect stamp tax on ads as a final product. It\u2019s unclear where we stand on the proposed changes, which the Finance Ministry <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/06281e82-be42-429f-9669-c84dd6a74985\">finalized in June<\/a> and which <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/47ee5e24-b61f-4e40-b65b-14f6b59d2626\">received approval<\/a> from the cabinet economic group a week later.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Broadcast ads are exempt from VAT, but subject to stamp tax and VAT on production inputs: Intermediary goods and services used to produce ads are subject to a 14% value-added tax (VAT), the Tax Authority said in a directive (pdf) to clarify how tax legislation treats ads. The cost incurred by an advertiser to broadcast [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":574834,"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":[8572],"tags":[72,180,2380,69,7110],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-574833","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-speed-round","tag-enterpriseam","tag-legislation","tag-speed-round","tag-tax","tag-vat","wpautop","entry"],"acf":{"mongo_id":"4b40b507-281a-45c7-932f-5e7f7446a40b","is_powered_by":true,"section_story_id":"01a49990-c0a6-474a-9234-976ca6dc30c3","story_type":"1","photo_url":"https:\/\/ent.news\/2020\/9\/254.jpg","photo_position":"above","related_issue":[574819],"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>Ads are still exempt from VAT, but not stamp tax and VAT on production inputs - 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\/2020\/09\/23\/ads-are-still-exempt-from-vat-but-not-stamp-tax-and-vat-on-production-inputs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ads are still exempt from VAT, but not stamp tax and VAT on production inputs\" \/>\n<meta property=\"og:description\" content=\"Broadcast ads are exempt from VAT, but subject to stamp tax and VAT on production inputs: Intermediary goods and services used to produce ads are subject to a 14% value-added tax (VAT), the Tax Authority said in a directive (pdf) to clarify how tax legislation treats ads. The cost incurred by an advertiser to broadcast [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2020\/09\/23\/ads-are-still-exempt-from-vat-but-not-stamp-tax-and-vat-on-production-inputs\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2020-09-23T04:13:28+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2020\/9\/254.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\/2020\/09\/23\/ads-are-still-exempt-from-vat-but-not-stamp-tax-and-vat-on-production-inputs\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2020\/09\/23\/ads-are-still-exempt-from-vat-but-not-stamp-tax-and-vat-on-production-inputs\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Ads are still exempt from VAT, but not stamp tax and VAT on production inputs\",\"datePublished\":\"2020-09-23T04:13:28+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2020\/09\/23\/ads-are-still-exempt-from-vat-but-not-stamp-tax-and-vat-on-production-inputs\/\"},\"wordCount\":320,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2020\/09\/23\/ads-are-still-exempt-from-vat-but-not-stamp-tax-and-vat-on-production-inputs\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2020\/9\/254.jpg?fit=%2C&ssl=1\",\"keywords\":[\"EnterpriseAM\",\"legislation\",\"SPEED ROUND\",\"tax\",\"VAT\"],\"articleSection\":[\"Speed Round\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2020\/09\/23\/ads-are-still-exempt-from-vat-but-not-stamp-tax-and-vat-on-production-inputs\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2020\/09\/23\/ads-are-still-exempt-from-vat-but-not-stamp-tax-and-vat-on-production-inputs\/\",\"name\":\"Ads are still exempt from VAT, but not stamp tax and VAT on production inputs - 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Other new stipulations in the newly-passed amendments:The big\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\/12\/362.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":572225,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/06\/16\/ads-will-be-subject-to-vat-but-not-stamp-tax-vat-drawback-system-for-tourists-could-be-expanded-under-sweeping-changes-proposed-to-value-added-tax-act\/","url_meta":{"origin":574833,"position":1},"title":"Ads will be subject to VAT (but not stamp tax), VAT drawback system for tourists could be expanded under sweeping changes proposed to Value-Added Tax Act","author":"enterpriseam admin","date":"16 June 2020","format":false,"excerpt":"SMART POLICY- Most commercial advertising will be subject to value-added tax under sweeping amendments to the VAT Act that the Finance Ministry finalized yesterday andposted to its website (pdf). In a move sure to be welcomed by advertisers and media organizations alike, the amendments would (if passed) also lift the\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\/2020\/6\/173.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":596348,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/08\/26\/govt-could-impose-5-10-schedule-tax-on-social-media-ads\/","url_meta":{"origin":574833,"position":2},"title":"Gov\u2019t could impose 5-10% schedule tax on social media ads","author":"enterpriseam admin","date":"26 August 2019","format":false,"excerpt":"EXCLUSIVE- The government is looking to impose a 5-10% schedule tax on social media and internet search ads on top of the 14% VAT as part of anticipated amendments to the VAT Act, government sources told Enterprise. Schedule tax is a type of sales tax imposed on some luxury goods\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":598126,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/05\/15\/government-to-collect-vat-from-download-sites\/","url_meta":{"origin":574833,"position":3},"title":"Government to collect VAT from download sites","author":"enterpriseam admin","date":"15 May 2019","format":false,"excerpt":"EXCLUSIVE- Government to required download sites to charge and remit VAT: The Finance Ministry\u2019s central value-added tax department is currently compiling a list of websites that charge for the download of books, movies, and songs, all of whom will be required to charge and remit VAT, VAT Department Head Sayed\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":574833,"position":4},"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":568720,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/02\/02\/tax-authority-considers-widening-vat-exemptions\/","url_meta":{"origin":574833,"position":5},"title":"Tax Authority considers widening VAT exemptions","author":"enterpriseam admin","date":"2 February 2020","format":false,"excerpt":"LEGISLATION WATCH- Tax Authority considers expanding VAT exemptions: The Tax Authority is considering expanding the list of items that qualify for VAT exemption to include oil products, crackers, soaps, air conditioners, and residential and non-residential units, head of the authority\u2019s central administration El Sayed Sakr said at a conference, according\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\/2020\/2\/12.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\/574833","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=574833"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/574833\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/574819"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/574834"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=574833"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=574833"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=574833"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=574833"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=574833"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}