The head of the Egyptian Tax Authority, Reda Abdel Qader, revealed that the authority’s e-commerce unit is working on counting, following up and registering companies that engage in trade activity through websites.
He explained that the Ministry of Finance is following closely The IRS to make every effort to achieve tax justice By defining the tax community more accurately, especially the transactions that take place through electronic platforms, and determining who is doing them, to include the informal economy in the formal system.
He pointed out, according to a statement, that e-commerce is an emerging form of marketing and selling imposed by changes in communication technology and new communication, and dependence on it has expanded in an unprecedented way globally due to the Covid 19 pandemic.
He pointed out that many countries describe any commercial transaction as electronic commerce when the ownership of goods, the sale process, or the performance of the service is transferred via the Internet or through other electronic means.
He explained that there are three types of companies that engage in e-commerce activity, the first type of which is companies that consider e-commerce just one of the various means of sale or distribution, and the second type is companies that were established and rely mainly on selling and distributing their products and services through electronic means, while the The third type in companies whose activity is digital platforms to display the products of sellers, and to facilitate comparison processes for buyers.
Regarding the tax situation of companies engaged in e-commerce activity, he indicated that with regard to income tax, all companies that engage in commercial or non-commercial activities (the activities of liberal professions) are subject to income tax in accordance with Law 91 of 2005 and they must register and declare their revenues as of the date of start the activity.
With regard to value-added tax, Abdel Qader said that according to Value Added Tax Law No. 67 of 2016, companies that sell public goods or perform services in the general category, when their business volume reaches EGP 500,000 annually, must register for value-added tax. The collection and remittance of tax in the general category of the competent tax office.
He stated that individuals and companies that provide professional and advisory services must register as of the date of the start of the activity, and collect and supply the value-added tax at the category of 10 percent, explaining that companies that engage in an activity to sell goods or perform services from the goods and services table must register as of the date Commencement of activity, collection and remittance of tax in the category corresponding to the sold commodity or service provided for by law.
He added, that individuals who are engaged in content creation activity (bloggers – YouTubers) must go to the mission within whose scope the main activity headquarters (income) is located to open a tax file to register with the competent income tax mission, as well as register with the competent value-added mission when their revenues reach 500 thousand pounds within two months. Ten months from the date of practicing the activity.