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NTRA, Finance Ministry determine application mechanisms of VAT on top-ups The agreement includes not changing prices after the tax is increased to 14% next year
The National Telecommunications Regulatory Authority has finished determining the application of the value-added tax (VAT) mechanisms on mobile phone services after meeting with representatives of the Ministry of Finance and mobile phone companies over the past two days. According to NTRA, it agreed to collect a VAT worth 60 piastres on the EGP 10 top-up cards (used to recharge phone credit). The cards will then be sold for EGP 11 to consumers, through which mobile companies would offer EGP 10 worth of services with extra credit worth 40 piastres. The VAT applied on the EGP 50 top-up will be EGP 3. It will be sold for EGP 55 to citizens for services worth EGP 50 and with extra credit worth EGP 2. The EGP 100 card will be sold for EGP 110 to consumers, offering services worth EGP 100, with extra credit of EGP 4 and a VAT worth EGP 6. It was agreed that top-ups would continue to be sold for their same prices in fiscal year (FY) 2017/2018 even after the 14% VAT increase.
