Taxes on e-commerce .. here’s how they will be collected in Egypt

The head of the Egyptian tax authority, Reda Abdel Qader, revealed that the authority’s e-commerce unit is working on counting, tracking and registering companies that do business across the sites web.

He explained that the Ministry of Finance is following closely The IRS to make every effort to achieve tax justice By defining the tax community more accurately, in particularly the transactions that take place through electronic platforms, and determining who does them, to include the informal economy in the formal system.

He pointed out, according to a statement, that e-commerce is an emerging form of marketing and sales imposed by changes in communication technologies and new communications and the dependence on it has expanded. in unprecedented way globally due to the Covid 19 pandemic.

He pointed out that many countries describe any business transaction as e-commerce when the ownership of goods, the sales process or the provision of the service are transferred via the Internet or other electronic means.

He explained that there are three types of companies that engage in e-commerce activities, the first type are companies that view e-commerce as just one of various means of selling or distribution, and the second type are incorporated companies and rely primarily on sales and distribution. to the distribution of its products and services through electronic means, while the third type in companies whose activity is digital platforms to display the products of sellers and to facilitate comparison processes for buyers.

Regarding the tax situation of companies that carry out e-commerce activities, he points out that in income tax, all companies that carry out commercial or non-commercial activities (activities of the liberal professions) are subject to income tax pursuant to Law 91 of 2005 and must register and declare their revenues on the date of commencement of the activities.

Regarding the value added tax, Abdel Qader stated that according to the Value Added Tax Law No. 67 of 2016, companies that sell public goods or provide services in the general category, when their turnover reaches EGP 500,000 per year, must register for the additional tax value AND the collection and payment of the tax in the general category of the competent tax office.

It states that individuals and companies providing professional and consulting services must register from the date of commencement of business, collect and provide value added tax in the 10 percent category, explaining that companies exercising a Activities to sell goods or perform services from the goods and services table must register on the date of commencement of the activity, collection and payment of the tax in the category corresponding to the goods sold or the service provided for by law.

He added, that people who are busy in content creation activities (blogger – YouTuber) must go to the mission in which the main office of the activity is located (income) to open a tax case to register with the competent tax mission, as well as how to register with the competent mission in added value when their revenues reach 500 thousand lire within two months Ten months from the date of exercise of the activity.

Read More About: Business News

Leave a Reply