VAT is the abbreviation of Value Added Tax. VAT is in general due when goods and/or services are sold. It applies to most goods and services supplied for use or consumption in Egypt. VAT is a consumption tax because it is ultimately borne by the final consumer.
Generally, VAT is invoiced by the supplier that is selling taxable goods or services and collected from the customer. Subsequently, the supplier declares the VAT collected on sales and remits the VAT to the tax authorities on a monthly basis.
Zoom is registered for VAT in Egypt as a non-resident supplier of digital services. As such, Zoom is required to collect VAT on supplies to customers that are not registered for tax purposes in Egypt, such as non-registered persons, and remit the VAT to the Egyptian Tax Authority (ETA).
If you are a resident registered taxpayer in Egypt, you should provide your Tax Registration Number (TRN) and Unique Identification Number (UIN) to Zoom. If the TRN and UIN are valid according to the ETA API, then no VAT will be charged on the supplies made to you by Zoom. If you do not provide a valid TRN and UIN combination to Zoom, then VAT will be charged on the supplies made to you by Zoom.
Video conferencing services supplied by Zoom fall under the category of digital services as they are services where, at the time of the performance of the service, there is no necessary connection between the physical location of the recipient and the place of physical performance. Therefore, Zoom (as a non-resident supplier of digital services) is required to charge VAT on such supplies to non-registered persons in Egypt at the standard rate of VAT with effect from June 22, 2023.
A Tax Registration Number (TRN) is a unique number assigned to businesses by the Egyptian Tax Authority (ETA) for tax purposes. A TRN identifies a customer as a resident registered taxpayer in Egypt.
Effective October 1, 2024, the ETA introduced the Unique Identification Number (UIN). The UIN is a 39-character, mixed-format identifier that is uniquely linked to your TRN and must be used by non-resident businesses to confirm the validity of your TRN via validation with the ETA API. To generate your UIN, please follow the steps outlined by the ETA here.
Your TRN and UIN will be validated using the ETA's API. UINs are valid for one year from the date that they are generated; you are therefore required to provide your updated UIN to Zoom when you generate a new UIN.
For any further questions regarding your UIN, please refer to the ETA user guide or contact the ETA.
To provide your TRN and UIN, follow the steps below depending on where your billing portal is located in the left navigation menu of the Zoom web portal. Not sure how to identify where your billing portal is located? Learn how to locate your billing settings.
Zoom performs periodic validation checks of customer TRNs and UINs to ensure that the TRN and UIN combination remains valid. If, during these periodic validations, it is identified that your TRN and/or UIN is no longer valid, Zoom may automatically update your account so that future invoices are subject to VAT. Where this happens, VAT will be charged on all future invoices until such time that a valid TRN and UIN combination is provided.
You are required to notify us if there is a change to your tax registration status.
Zoom is required to validate customer TRNs and UINs against the ETA database in real-time using an Application Programming Interface (API) set up by the ETA. Your UIN is valid for one year from the date that it is generated, you are therefore required to notify us if your UIN has been updated/renewed.
Yes, Zoom is registered for VAT in Egypt as a non-resident supplier of digital services and Zoom’s registration number will be shown on the invoice it issues to you.
If a customer's Sold To location is in Egypt, and the customer has not provided a valid TRN and UIN, Zoom will charge VAT on its invoices issued to you. This information is subject to cross-referencing against other data to verify that the ‘Sold To’ country is accurate.
It is your responsibility as a customer to ensure that your ‘Sold To’-address is accurate
There are no VAT exemptions applicable in respect of digital services to non-profit organizations or international agencies in Egypt. Accordingly, Zoom is required to charge VAT to all customers who are not resident registered taxpayers in Egypt.
If you have provided a valid TRN and UIN to Zoom, no VAT will be charged on the supplies made to you. However, as a resident registered taxpayer, you may be obligated to self-account for VAT on supplies received via the reverse charge mechanism.
There is no VAT reporting obligation for a customer who is not a resident registered taxpayer in Egypt as Zoom will charge VAT on its supplies to you and remit such VAT to the tax authorities.
As a non-resident supplier of digital services, Zoom is exempted from the provisions of the electronic tax invoice system in Egypt. Instead, non-resident suppliers providing taxable services to non-registered persons in Egypt are subject to specific invoicing rules. The invoice/receipt must contain the following data:
Zoom will issue invoices to customers in Egypt in accordance with the above-mentioned requirements.
The TRN and UIN can be entered at any time. If a valid TRN and UIN are entered and validated with the ETA API before the issuance of the next invoice, Zoom will not charge VAT on the next invoice or future invoices issued to you. If a valid TRN and UIN combination is not entered or cannot be validated with the ETA API at the time of issuance of the next invoice, VAT will be charged until a valid TRN and UIN combination is entered.
No retrospective adjustments will be made to invoices where you did not provide a valid TRN and UIN combination to Zoom; however, in such cases, you may be entitled to claim the VAT charged by Zoom as input VAT on your periodic VAT filings. For any further questions with regards to claiming input VAT charged by non-resident suppliers of digital services, such as Zoom, please contact the ETA directly.
Every customer is unique and so are their specific tax circumstances. The above-stated information should not be considered as tax advice, but as a general overview of relevant VAT rules in Egypt. Zoom cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.