Key changes to Egypt's VAT Law

Egypt has issued Law No. 149 of 2026, amending certain provisions of the Value Added Tax Law No. 67 of 2016. The amendments introduce changes affecting the VAT treatment of certain goods and Services. Listed below a summary of key updates.

The law was issued in the Official Gazette on 28 July 2026, and was implemented on the day following its publication. 

Key updates

1. Medical devices
   The amendments clarify that medical devices used in the production of goods or the rendering of services are subject to VAT at the reduced rate of 5%, instead of 14% VAT.
2. VAT credit balance
   The amendment to Article 30 (first paragraph, item 3) provides that a VAT credit balance may be refunded once it has remained outstanding for four consecutive tax periods, instead of six. 
3. Natural gas excluded from exemption
   The amended law removes natural gas from the VAT exemption list and brings it within the schedule tax regime under Table 1. subject to schedule tax at EGP 20 per 1,000 cubic feet. 
4. VAT on leasing
   The amendment to Item 28 of the VAT exemption for leasing buildings and units does not apply where the leased premises are used as a separate and independent headquarters for carrying out or managing a commercial activity.
5. Schedule tax item
   The amended law removes 2 items from the schedule tax provisions, item no.8 Gypsum and Item No. 10 detergents. As a result, these products will no longer be subject to schedule tax and will instead fall under the general VAT rate 14%.