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    DailyNewsEgypt
    January 14, 2026 (2 months ago)

    VAT exemptions, extended payment suspension introduced in new tax facilitation package

    Featured image for: VAT exemptions, extended payment suspension introduced in new tax facilitation package
    Egypt VAT News • DailyNewsEgypt

    Summary

    Egypt's tax authority announced a new facilitation package that reduces the VAT rate on medical devices to 5%, fully exempts inputs for kidney dialysis equipment, extends VAT payment suspension up to four years for industrial machinery, and exempts transit services under customs supervision. It also standardizes the 14% VAT rate on soap and industrial detergents for household use, allowing input deductions. These measures aim to support healthcare, manufacturing, and transit trade.

    Key Insights

    What VAT rate will apply to medical devices under the new package?

    Medical devices will be subject to a reduced VAT rate of 5% instead of the standard 14%.

    Which inputs used in kidney dialysis equipment are exempt from VAT?

    Inputs, components, and supplies used in kidney dialysis equipment and kidney filters are fully exempt from VAT.

    How long can VAT payment be suspended for machinery and medical devices used in industrial production?

    The suspension period can be extended up to four years, subject to valid reasons and justifications accepted by the Egyptian Tax Authority.

    Are services rendered on goods in transit exempt from VAT?

    Yes, if transportation is supervised by the Customs Authority and complies with the Customs Law.

    What change applies to soap and industrial detergents for household use?

    They are now subject to the standard 14% VAT rate, allowing deduction of related production inputs.

    Africa
    Egypt
    Compliance
    Exemptions
    Cross-Border
    VAT Rates
    Read Full Article at DailyNewsEgypt
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