The Egyptian Tax Authority determines the VAT on freight services for exempted goods
The Egyptian Tax Authority has recently announced the value-added tax (VAT) due on sea, land, and air freight services for exempted goods, scheduled goods, machinery, and equipment. This move comes after reviewing the prices of freight service values approved by the Division of International Transport and Logistics Services in the Chamber of Egyptian business in Alexandria. The taxes sent an approved guiding statement of the values of freight services to the Customs Authority to circulate it to all customs outlets for use in collecting the value-added tax due on the values of freight services.
Cooperation Protocol for the value-added tax Collection
This announcement is part of the implementation of the cooperation protocol concluded between the Egyptian Tax Authority, the Egyptian Customs Authority, and the Division of International Transport and Logistics Services. The protocol aims to facilitate the collection of value-added tax due on sea, air, and land freight services paid on exempted goods, table goods, machinery, and equipment. The guiding statement of the values of freight services was sent to all customs outlets to ensure proper collection of the value-added tax and preserve the funds of the state’s public treasury.
Crackdown on Smuggling and Customs Evasion
According to data from the Ministry of Finance, the government has been cracking down on smuggling and customs evasion. During the past January and February, 4,300 smuggling operations were thwarted, and legal measures were taken to recover the due fees and fines, which amounted to 3 billion, 617 million, and 446 thousand pounds. The Central Administration for Combating “Customs Evasion” also issued 5 records of control of disposal operations in production requirements for fictitious factories and companies, with a value of dues amounting to 2,177,326,000 pounds. Additionally, 2,246 records were issued related to exemptions and special systems, with a value of about 58,919,000 pounds.
Measures Taken to Ensure Proper the value-added tax Collection
The Egyptian government has taken measures to ensure proper collection of the value-added tax due on freight services for exempted goods, scheduled goods, machinery, and equipment. The cooperation protocol between the Egyptian Tax Authority, the Egyptian Customs Authority, and the Division of International Transport and Logistics Services aims to facilitate the collection of the value-added tax. The guiding statement of the values of freight services has been sent to all customs outlets to ensure proper collection of the value-added tax and preserve the funds of the state’s public treasury. Furthermore, the government has been cracking down on smuggling and customs evasion to recover the due fees and fines.
The latest developments in the “Tahya Misr” station in Alexandria Port
The Alexandria Port is one of the most important ports in Egypt, and as such, there are many major projects currently underway overseen by the Ministry of Transportation. The port is managed by a well-known international company, CMA of France, which specializes in management and operation, and owns shipping lines, making it the second-largest company of its kind in the world.
One of the important major projects is the establishment of the “Tahya Misr” station, which is a smart, green station that operates with the best modern methods for loading, unloading, and trading goods.
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You can rely on us in all your financial affairs related to your investment, and we can also support you if you wish to invest in free zones or ports inside and outside Egypt in accordance with applicable legal regulations.