The Egyptian Tax Authority (ETA) stated that there is no truth to reports of disputes between the government and oil companies over the new value-added tax (VAT) law, confirming that the law is clear and a full agreement has been reached on all issues and that the executive regulations will be issued soon, according to a statement by the Ministry of Finance.
ETA explained that the Egyptian General Petroleum Corporation (EGPC) is the sole purchaser of crude oil in Egypt. It bears the value-added tax at a rate of 10% as the recipient and beneficiary of the commodity, whether the oil is locally produced or imported, and it is responsible for remitting the tax to the ETA.
As part of the new VAT law, the Finance Ministry plans to register foreign suppliers with the Egyptian Tax Authority under a simplified system, according to which the Egyptian buyer (EGPC) pays the tax instead of the foreign seller. A number of foreign oil companies expressed worries about the administrative and legal complexities of registration for fear it could complicate contracts.
ETA urged the media to exercise accuracy and verify information with the relevant authorities in order to safeguard the national interest