In Egypt, the “long-awaited” Tax-Free system, built on the European analogy, was launched. Tourists will now be able to reclaim VAT on most purchases made in Egypt. However, so far the system has been launched only in Sharm el-Sheikh, apparently “in honor” of the climate summit currently taking place in the resort.
The minimum amount for which you can apply for a VAT refund is small – the value of purchases must exceed 1.5 thousand Egyptian pounds, i.e. 2.2 thousand hryvnias.
Egypt expects that foreign experts and other invited specialists participating in the climate summit will not leave the country without expensive souvenirs and purchases, which is why the system was launched at the time of the forum and so far only in Sharm el-Sheikh. The details of how tourists will be reimbursed the value-added tax (VAT) when purchasing goods in Egypt were explained in the following way by the Egyptian Tax Authority (ETA).
Foreign tourists can get back the value-added tax on their purchases if their stay in the country does not exceed three months, and the value of the purchases is at least 1,500 Egyptian pounds (approximately $60 or UAH 2,200). The tourist must present the purchase in an unpacked package and make sure that the point of sale is connected to the Tax-Free system. When buying goods from Tax-Free, a foreigner receives an electronic receipt containing his passport number. Posters, info stands, and stickers should inform that the store offers such a service. This information must be in Arabic, English, French, Russian, and Spanish.
Next, upon departure from Sharm el-Sheikh, the tourist must present the purchased goods, passport, and fiscal document confirming the purchase at a special kiosk at the airport. A bank account is required to transfer the amount of refunded tax.