Uber signs agreement with Egyptian government to pay VAT

Uber has agreed to pay Value Added Tax (VAT) in Egypt, Reuters reported yesterday citing a government official. Careem according to a company’s spokesman in Egypt, complying with the Egyptian law, has been paying VAT since March 2018.

The announcement of Uber and Egyptian Tax Authority’s agreement comes a week after Uber increased its fares in Egypt .

“We have been thoroughly assessing driver earnings in light of the upcoming implementation of VAT but also taking into consideration the increasing inflation rate, and the regional standardization of the Uber service fee. Accordingly, the fare prices for trips facilitated through the Uber App were adjusted in an effort to support the stability of drivers’ earnings, while remaining affordable for riders,”  Ahmed Khalil, Head of Central Operations for Uber MENA had said in a statement.

Abdel Azeem Hussein, the head of the Egyptian Tax Authority, said that the agreement will also be applied to other ride-hailing companies.

“Reaching an agreement and determining the tax treatment that will be applied to the company Uber and other companies operating in the same area will enhance confidence and cooperation between the authority and the tax community,” said the ETA chief, speaking to a state-run news agency.

Enterprise, an Egyptian publication, citing a government official has reported that the company will remit VAT retroactive to 2016.