Online Shopping in Egypt About to Get More Expensive
Sites like Souq, Jumia and OLX are set to be effected by the news.
Egypt's Ministry of Finance has this week announced that will begin implementing a 14% value-added tax (VAT) to online Egyptian retailers like Souq, Jumia, and OLX. If the product purchased is usually taxed when sold offline, then it should also be taxed when sold online, according to government sources talking to Enterprise.
Some online retailers have already began implanting the VAT upon the Finance Ministry's notice; the government sources added that – just like running an offline business – the online retailers are required to complete their VAT payments by the end of each month.
The news comes as part of the Ministry's VAT reform in which they're attempting to compensate for the $12 billion IMF loan by adding taxes to anything that Parliament deems taxable.
Main image from Saga UK.