Egypt to create new VAT refund system for tourists in all ports

Egypt’s Ministry of Finance will create an electronic system in the country’s sea, land and air ports with the aim of facilitating the procedures of refunding the value added tax (VAT) to foreign visitors or tourists in Egypt.

The move, which comes in line with a decision issued by Finance Minister Mohamed Maait on Sunday, aims to boost shopping tourism in Egypt, and turn the country’s tourist resorts into global shopping centres.

The VAT will be refunded for purchases whose value exceeds EGP 1,500, according to the decree. The refund process will take place while tourists are departing from the Egyptian ports going back to their countries.

In Egypt, goods and commodities meant to be exported are tax-free.

Under the current system, Egypt’s ports have no offices for VAT refunds. Accordingly, the tourist submit a refund application to the Egyptian Tax Authority (ETA) attached with number of documents include the purchase bill, evidence of payment of tax, the tax identification number, the diplomatic identification number of the claimant.

The tourist should submit the application within two months after the purchasing date, and he is allowed to submit one refund application every month.