VAT registration threshold in Egypt

If you run a business or professional activity in Egypt and are wondering when VAT registration becomes mandatory, the answer comes down to a single figure set by the Egyptian Tax Authority. This page explains the threshold, who is exempt from it, and when voluntary registration is worth considering.

Short Answer

The VAT registration threshold in Egypt is EGP 500,000 in total sales or services over the preceding twelve months, under Article 18 of Value Added Tax Law No. 67 of 2016 and its Executive Regulations ^[1][2]. Once that figure is reached — or is expected to be reached — registration becomes mandatory within 30 days. Suppliers of goods and services listed in the Schedule of Goods and Services (such as professional services and contracting) must register from the first pound, with no threshold applying to them.

Who Must Register and Who Need Not

The rule is straightforward in theory, but complex in practice.

Any natural or legal person who sells a taxable good or renders a taxable service and whose total sales reach EGP 500,000 within any consecutive twelve-month period must register. That period is not calculated from the start of the fiscal or calendar year — it is calculated on a rolling basis, meaning from any given month to the same month the following year ^[1].

A second category exists for which this threshold does not apply at all: persons supplying goods or performing services listed in the Schedule of Goods and Services appended to the law. Anyone providing professional consultancy, contracting, outsourced operations, security and guarding services, or advertising must register from their very first transaction, regardless of its value ^[2][3].

Importers must also register regardless of import volume.

How to Calculate the Threshold in Practice

A common mistake is to count sales only from the beginning of the year. That is incorrect.

At the end of each month, add up your sales for the twelve months ending in that month. If the total exceeds EGP 500,000, you are required to submit a registration application within 30 days of reaching that threshold ^[1]. Late registration exposes you to a fine of between EGP 10,000 and EGP 50,000 under Article 67 of the law, plus the tax itself and the additional tax for the period during which you should have been collecting it ^[2].

An important point many overlook: exempt sales are not counted toward the threshold, but sales subject to the zero rate (such as exports) are counted. Refer to Article 2 of the Executive Regulations if your activities are mixed ^[2].

Note: If you expect your sales to reach the threshold within the next 12 months on the basis of a contract or major project, the law requires you to register in advance. Do not wait for the invoice that pushes you over the limit.

Voluntary Registration: When Is It Worth It?

Anyone who has not yet reached the threshold may apply for voluntary registration under Article 19 of the law ^[1]. The real question is whether it is worthwhile.

It is worth it in two situations. First, if your customers are registered companies that require tax invoices in order to deduct input tax — registration opens that market to you. Second, if your purchases and inputs carry significant VAT, registration allows you to deduct that tax and recover any excess.

It is not worth it if your customers are end consumers who have no interest in a tax invoice, because you would be adding 14% to your price with no competitive benefit. Consider this carefully before opting in.

Registration is completed electronically through the Egyptian Tax Authority portal and typically takes two weeks to one month for the registration certificate and tax file number to be issued ^[3].

Tax Rates After Registration

Once you have crossed the VAT registration threshold in Egypt and are registered, the following rates apply:

• Standard rate: 14% on most goods and services.
• Schedule of Goods and Services: Special rates ranging from 5% to 10% and sometimes higher, as set out in the schedule appended to Law No. 67 of 2016 and its amendments ^[1].
• Equipment and machinery used in production: 5%.
• Exports: 0%.

You are required to file a monthly return within the two months following the end of the tax period, together with payment of the tax due. The penalty for a late return is separate from the penalty for late payment.

For more on business taxation in Egypt, see the Tax Guide.

Summary

EGP 500,000 is the gateway. Reaching it triggers mandatory registration within 30 days. If you operate in a service listed in the Schedule of Goods and Services, disregard the threshold entirely — registration is required from the outset. Monitor your sales monthly on a rolling twelve-month basis, not by the fiscal year.

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