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Taxes: Bloggers and YouTubers must register with the added value when their revenues reach 500 thousand pounds

Reda Abdel Qader, head of the Egyptian Tax Authority, said that the Ministry of Finance is closely following the Tax Authority to make every effort it has to achieve tax justice by listing the tax community more accurately, especially transactions that take place through electronic platforms, and determining who does them, to include Informal economy of the official system, and to reclaim the rights of the state’s public treasury, pointing to the role played by the e-commerce unit at the authority in listing, following up and registering companies that engage in trade activity through websites.


Abdel Qader pointed out that e-commerce is an updated form of marketing and sales 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, as the company’s sales officials receive sales orders and undertake the marketing and sale of goods and services. Through a variety of means, such as telephone, fax, television or via the Internet, noting that many countries describe any commercial transaction as electronic commerce when the ownership of goods is transferred (sale) or service is performed over the Internet or by other electronic means.


Abdel Qader explained that there are three types of companies that engage in e-commerce activity, the first type of which is companies, e-commerce is just one of the various means of sale or distribution, and the second type is companies that have been established and depend mainly on selling and distributing their products and services. Through electronic means, while the third type is represented by companies whose activity is digital platforms to display the products of sellers, and facilitate comparison processes for buyers.


Regarding the tax situation of companies that engage in electronic commerce activity, the “Head of the Egyptian Tax Authority” clarified 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 according to Law 91 of 2005 and they must register and declare its revenue as of the date of commencement of the activity.


With regard to value-added tax, Abdel Qader said that according to Value Added Tax Law No. 67 of 2016, companies engaged in selling public goods or performing services in the general category, when their turnover reached 500,000 pounds annually, must register with value tax. Also, 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 value-added tax at the denomination of 10%, explaining that companies that engage in an activity to sell Goods or performance of services from the goods and services of the schedule shall be registered as of the date of commencement of the activity, and the collection and remittance of tax in the category corresponding to the sold commodity or the service performed as stipulated by law.


The head of the Egyptian Tax Authority added that individuals who engage in content creation activity (bloggers - YouTubers) must go to the office within whose scope the main activity headquarters is located (income) 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 twelve months from the date of practicing the activity.


Abdel Qader said that in the event of any inquiries related to e-commerce, the integrated call center should be contacted at 16395 or head to the headquarters of the e-commerce unit at the Egyptian Tax Authority located in Mahmoudia Tower - Maadi Highway - Saqr Quraish _ Ground Floor.