EGPC is the sole purchaser of crude oil in Egypt and bears the 10% VAT as the recipient and beneficiary of the commodity

The Egyptian Tax Authority affirmed that it has followed with concern recent inaccurate media reports suggesting a tax dispute between the government and oil companies regarding the application of Value Added Tax (VAT) on crude oil. The authority stressed the need to clarify the matter.

 

It categorically denied any disagreement between the government and oil companies on VAT, confirming that the law is clear, all matters are fully agreed upon, and the executive regulations will be issued soon.

 

The authority explained that the Egyptian General Petroleum Corporation (EGPC) is the sole purchaser of crude oil in Egypt and bears a 10% VAT as the recipient and beneficiary of the commodity, whether domestically produced or imported. The VAT is then remitted to the authority.

 

It further emphasized that subjecting crude oil—not petroleum products—to a 10% VAT will in no way lead to any increase in local fuel prices.

 

The authority urged media outlets to ensure accuracy and verify information through official channels, for the sake of the national interest.