Egypt's parliament approves VAT amendments

On 23 June 2026 the House of Representatives approved a package of amendments to the Value Added Tax Law as part of the government's tax reform agenda.

For manufacturers, the VAT suspension period on imported industrial machinery extends from two years to four, deferring when the liability on a new production line falls due. VAT on medical equipment drops from 14% to 5%.

On liquidity, the VAT refund window shortens from six months to four. In construction, the 5% specific tax on building activity is abolished and replaced by the standard 14% VAT rate, with an exception for the construction and maintenance of places of worship.