Egyptian business publication, Enterprise has reported that every e-commerce platform in Egypt has been asked by the country’s Finance Ministry to charge value-added tax (VAT) on all the items that would be subject to VAT if sold offline.
According to the Enterprise, some of the online retailers have already included 14% VAT to their billing systems as directed by the Finance Ministry. Egypt had introduced 13% VAT late last year which was later increased to 14% in 2017.
As cited on some of the products on Souq, the e-commerce has already added 14% VAT on the items that are required to be taxed according to Egyptian regulations.
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Souq page stated that “As per Egyptian Tax regulations, VAT is charged at 14% on orders sold and shipped by Souq.com within Egypt. The advertised prices for products displayed at Souq.com are inclusive of any VAT in accordance with the Egypt VAT law.”
“If your order contains items from a FBS (Fulfilled by Souq) Seller or any other Marketplace Seller, it is the requirement of the Seller to charge any VAT if they are registered. Marketplace Sellers not exceeding the Egypt VAT registration threshold shall not issue a Tax Invoice and charge VAT on their sales,” it further adds.
While Souq has already applied VAT tax, Jumia doesn’t seem to have the VAT included in their prices yet.
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