The Egyptian Tax Authority announced the exemption of export shipping services, including sea, air, land, and other services on goods exported from value added tax. 

The Federation of Chambers of Commerce and the General Directorate of International Transport Companies entered into negotiations with the ministry several weeks ago to exempt export services from the tax in order to ease export burdens and to give export commodities a competitive advantage in the global market.

Imad Samy, head of the Tax Authority, said in the explanatory instructions No. 7 of 2018 issued by the Department on this file that the value added tax on export shipping services, including sea, air and land tariffs, is taxed zero provided that the beneficiary undertakes to provide Documents indicating the completion of the export of the service, such as the copy of the bill of lading approved by the agent or shipping line.

The instructions issued by the Authority indicated that these instructions were based on the issuance of Article 3 of the Value Added Tax Law, the second paragraph of Article 52 of the same law, Article 5 and Article 35 of the Executive Regulations of the Law, and the Minister of Finance Decree No. 87 of 2017.