Egypt’s content creators need to start paying their fair share of VAT. That’s the word from the head of the Egyptian Tax Authority, who says YouTubers and bloggers need to register for VAT if they exceed the applicable revenue threshold.
Any business with a revenue of EGP500 000 per annum must register for VAT in Egypt. And authorities say content creators are therefore no exception.
Social media influencers, YouTube stars and other content creators earn money through advertising on their sites or online channels, among other potential revenue streams. According to an Egyptian analyst, it is quite reasonable to “collect taxes from YouTubers who have made huge profits in a short period of time”.
VAT on food delivery in Egypt
Egypt’s tax authorities have paid closer attention to the digital economy as more businesses pivot to online sales.
The Egyptian Tax Authority recently announced that food sold online is subject to VAT and that restaurant deliveries are also subject to VAT.
As with content creators, restaurants that sell online must register for VAT if their annual turnover exceeds EGP 500 000.
Note that VAT in Egypt is set at 14%.
Social media stars step into the VAT spotlight
Egypt is not alone in seeking to ensure social media stars don’t avoid paying VAT. Tax authorities in the Philippines recently issued a circular emphasising that YouTubers, TikTok stars and social media influencers are obliged to pay VAT and income tax.
The Philippines also recently introduced legislation imposing digital services VAT on nonresident providers of online services. The move is in line with global trends, with an increasing number of countries introducing VAT on digital services.
Making VAT compliance easy for everyone
The digital economy means that more people than ever have VAT obligations. Whether you generate income from a store or through content on YouTube, you may have to register for VAT. And if you generate income online, there’s a good chance you have VAT obligations in multiple countries.
If that sounds daunting, there’s no need to worry. Vatglobal’s technology-driven VAT compliance solution makes meeting your VAT obligations simple, efficient and cost effective. So get in touch with Vatglobal for a complete VAT compliance solution that meets your business’s needs.