VAT services
In 2016, Value Added Tax (VAT) was introduced in Egypt which replaced the Sales Tax. VAT applies to goods or services except those that are exempt. To date, any entity or individual with annual sales or turnover higher than EGP 500,000 must register for VAT. For importers, the threshold is zero which means all importers need to register.
A VAT return needs to be submitted, regardless if sales occurred or not. Starting 2019, VAT returns and payments are handled online via the electronic portal of the Tax Authority. Payments of VAT need to be paid at the same time VAT returns are filed. Penalties for non-compliance include interest on due amounts .
Our team is here to support you with
Our scope includes:
I.
VAT outsourcing services
Registration
in VAT system and electronic portal
Filing
VAT amounts based on Clients invoices
Submitting
VAT prepayment amounts on Tax Authority electronic portal
Payment
of VAT liability to Tax Authority
Reconciliation
of filed VAT returns
“We have been using KeysGroup for many years now for our bookkeeping and for the payroll. Being a foreign company, not having knowledge of the language and local legislation, you need to be able to rely on a partner that helps you with all aspects of this and that also keeps you informed and updated about changes in legislation and obligations. KeysGroup supported us all the way in this, so that we don’t have any worries at this level and that we can concentrate on our core business, selling fertilizers.”
Hans Janssens, Marketing & Overseas Markets, BMS Micro-Nutrients
II.
Withholding tax compliance
When an Egyptian entity pays a local supplier for goods or services, for an amount of EGP300 or over, the entity needs to withhold taxes from the invoice at the time of payment. The withheld amount needs to be paid to the tax authorities by stating the supplier’s tax card number. Payments of WHT are basically prepayments of the suppliers liability towards Corporate Income Tax. When the annual corporate tax amount is calculated, any WHT amounts withheld by customers are seen as prepayments and therefore deducted from the total tax liability. Keys handles preparation of withholding tax forms and presents to authorities quarterly, and makes the necessary entries in the accounting books of clients to ensure each withheld taxes from clients are recorded accordingly.
Preparation
of withholding tax calculation based on payments made to suppliers
Submitting
withholding files on Tax Authority electronic portal
Filing and payments
timely submission and payments of withholding taxes
Compliance
ensuring client ledger matches accurate withheld taxes by clients