Zero value added tax for exported services stimulates the economy

See Dr. The deputy chairman of the finance and Taxation Committee of the Egyptian Lebanese businessmen Association, Ashraf Hajar, said that in light of the global economic challenges and the relentless quest to increase the state's foreign currency resources, the importance of encouraging non-traditional export activities, especially the exporting services provided by Egyptian companies to customers outside the country as an effective tool to attract hard currency, balance the trade balance and enhance the ability of Egyptian companies to compete in global markets, also contribute to creating new job opportunities and thus accelerate comprehensive economic growth, stressing that applying zero rate to exported services is different from tax exemption, as the legislator has given an advantage Additional-Dr. The exporter, whether it is a service or a good, has the ability to recover the tax paid on inputs, which encourages the exporter to increase productivity and look for more export opportunities, which is a common practice in many countries where countries subject exported services to zero, in application of the principle of destination tax, which requires that taxes be levied on consumption in the country where consumption is carried out.

He explained that in Egypt, you must meet the conditions in order to prove the export of services, namely proof of dealing between the service provider and its recipients under a contract with the submission of a detailed invoice and the provision of proof of payment of the service by bank transfer from abroad, and had issued a book number ٥ and الضريبية from the tax research sector to subject the services performed to commercial agents and branches of foreign companies in Generalال contrary to the letter of the law at that time, and then executive instructions were issued in general ٢٠٢٤ to cancel these books and consider them as exported services subject to zero،

As for the UAE, the legislator allowed exporting services to be allocated to zero percentage on conditions, namely that the recipient of the service should not have a place of residence in the UAE, and the recipient should be outside at the time of providing the service, and in Saudi Arabia the legislator allowed the application of zero percentage agreement concluded between the Gulf countries, and this comparison shows the importance of applying zero percentage to exporting services between countries because there is great competition to encourage the export of services, and Egypt has great wealth in all service, technological and marketing sectors that enable it to excel in this sector if it is encouraged with a focus on education and linking its outputs to the needs of the labor market encouraging innovation and thinking outside the box