Egypt VAT Calculator: Standard & Reduced Rates (2026)

Egypt VAT is charged under the Value Added Tax Law No. 67 of 2016, administered by the Egyptian Tax Authority (ETA), at a standard rate of 14% on most goods and services. Unlike some other African VAT systems that operate a single flat rate, egypt vat tax includes a genuinely separate reduced rate of 5%, applicable to a defined list of goods — most notably certain categories of machinery and equipment used in production, and specific medical equipment and supplies. Getting the rate selection right matters more here than in a single-rate system, since using 14% where 5% actually applies (or vice versa) produces a meaningfully wrong result, not just a rounding difference.

When the 5% reduced rate actually applies

The reduced rate isn't a general discount available on request — it applies to specifically listed categories under the VAT Law and its executive regulations, primarily production machinery and equipment (as opposed to general capital goods) and defined medical equipment and supplies. If you're not certain whether a specific transaction qualifies for the reduced rate, the safer default is the standard 14% rate; this calculator makes the reduced rate an explicit toggle rather than a silent default, precisely so you have to consciously confirm eligibility before applying it.

Adding VAT: EGP 1,000 becomes EGP 1,140

At the standard rate, a net amount of EGP 1,000 attracts EGP 140 in VAT, for a gross total of EGP 1,140. At the reduced 5% rate for qualifying goods, the same EGP 1,000 net amount attracts only EGP 50 in VAT, for a gross total of EGP 1,050 — a meaningful difference that makes correct rate selection genuinely consequential for anyone importing or supplying qualifying machinery or medical equipment.

Working backwards from a VAT-inclusive price

To extract the net amount from a gross figure, divide by 1.14 at the standard rate (or 1.05 at the reduced rate), rather than simply subtracting the percentage from the gross figure. This is the same principle that applies across every VAT system: because the tax was calculated on the smaller net amount, not the larger gross amount, a flat percentage subtraction from the gross figure always overstates the tax and understates the true net price.

VAT registration in Egypt

VAT registration becomes mandatory once a business's annual taxable turnover exceeds EGP 500,000, with a separate, lower threshold applying to specific professional and consultancy services. Once registered, businesses must charge output VAT on taxable sales and can reclaim input VAT paid on qualifying business purchases, filing and remitting the net difference to the Egyptian Tax Authority on a monthly basis through Egypt's e-invoicing and e-receipt system, which has become mandatory for most VAT-registered businesses in recent years as part of ETA's digital tax administration push.

What this calculator doesn't cover

This tool calculates standard and reduced-rate VAT arithmetic only. It doesn't determine whether a specific good or service actually qualifies for the 5% reduced rate — that's a classification question under the VAT Law's schedules, not an arithmetic one — nor does it handle zero-rated exports, VAT-exempt supplies, registration mechanics, or e-invoicing compliance. For classification questions on a specific transaction, ETA guidance or a tax advisor is the right next step, not this calculator.

Why Egypt's two-rate system trips people up more than a flat rate would

Anyone searching for a vat tax egypt calculator is often trying to solve a classification problem disguised as a math problem — the arithmetic itself (multiply or divide by 1.14, or 1.05 for the reduced rate) is simple, but knowing which rate actually applies to a given invoice line often isn't. Importers of production equipment are the group most likely to genuinely qualify for the 5% rate; general retailers and service businesses almost always fall under the standard 14% rate by default. When in doubt, calculating both figures side by side — which this tool makes easy by toggling the reduced-rate option on and off — at least shows you the size of the difference you're deciding between, even if it doesn't resolve the classification question itself. Egypt's e-invoicing mandate, rolled out progressively since 2020 and now covering most VAT-registered businesses, also means the VAT amount on a compliant invoice is validated against ETA's system in real time — another reason using the correct rate at the point of invoicing matters more than it might for a system without that kind of digital verification layer.