Egypt MOF Clarifies Temporary Application of VAT to Marine Freight Services on Imported Goods

The Egyptian Ministry of Finance Nov. 25 clarified the temporary application of VAT to marine freight services for imported goods pending the outcome of draft VAT amendments to exempt freight services for grains, spices, and salt. The agency explained that: 1) VAT doesn’t apply to the services if imported under the cost of shipping and insurance system (CIF), and that the shipping price must be included in the price of the goods; and 2) VAT applies to the services under the free onboard system (FOB), and that the shipping price must be separately stated. [Egypt, Ministry of Finance, 11/25/20]

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