Egypt VAT: Mandatory API Validation for Digital Service Providers

If you sell digital services to Egyptian businesses, a new technical requirement came into effect on 1 December 2024. This article explains what it is, who it affects, and exactly what you need to do to stay compliant.

What This Means

The Egyptian Tax Authority (ETA) now requires all non-resident digital service providers to verify the tax credentials of Egyptian business buyers in real time — before completing any B2B transaction.

This is done through a dedicated API platform called the ecomSDK.

The ecomSDK is not an e-invoicing system, and it doesn’t replace your existing VAT return filings. It’s a separate, standalone obligation on top of your current requirements.

When It Applies

This applies to you if:

• You’re a non-resident business selling digital services to customers in Egypt

• You’re already registered for VAT in Egypt under the Simplified Vendor Registration

• You sell to Egyptian businesses (B2B) and apply the reverse charge mechanism

If you only sell to Egyptian consumers (B2C), this API requirement doesn’t apply — but you are still required to charge and remit 14% VAT (or 10% for professional and consultancy services).

Why This Exists

Previously, Egyptian business buyers provided a Tax Registration Number (TRN) to qualify for the reverse charge. This system was widely abused.

To close that gap, the ETA introduced a new Unique Identification Number (UIN) in late 2024. The ecomSDK validates both the TRN and UIN together before a transaction is processed.

What Happens for B2B vs. B2C Transactions

Getting this distinction right is where compliance risk is highest.

B2B — selling to a VAT-registered Egyptian business:

• The reverse charge applies — you do not charge Egyptian VAT

• You must validate the buyer’s TRN and UIN via the API before completing the transaction

• If validation fails, the transaction is automatically reclassified as B2C

B2C — selling to an unregistered Egyptian consumer:

• You charge and collect 14% VAT (or 10% for professional/consultancy services)

• You file and remit under your existing Simplified Vendor Registration

What You Need to Do

This is something you’ll need to set up directly with the ETA. Here’s how the process works:

1. Register for access to the ecomSDK via the ETA portal: eta.gov.eg/en/ecomSDK

2. Review the integration documentation — full API endpoints and a Postman collection are available on the portal

3. Build the validation step into your checkout flow — your Egyptian B2B buyers will provide their TRN and UIN at the point of purchase

4. Call the ETA validation endpoint to confirm both credentials are valid before completing the transaction

5. Apply the correct tax treatment based on the result:

   • Validated → reverse charge applies, no VAT charged

   • Not validated → treat as B2C and charge 14% VAT

6. Track UIN expiry — UINs are valid for one year, so you’ll need to revalidate buyers when theirs expires

Penalties for Non-Compliance

The ETA takes non-compliance seriously. Penalties include:

• EGP 5,000–50,000 in fines for registration and invoicing failures

• Up to EGP 2,000,000 for failing to submit VAT returns within 60 days

• 1.5% per month additional tax on late payments

• A market access ban — the ETA can prohibit non-compliant vendors from selling in Egypt

• Criminal liability — tax evasion carries 3 to 5 years’ imprisonment under Egyptian VAT law

The ETA has already identified over 800 companies believed to be non-compliant with Egypt’s digital services VAT rules.

Contact the ETA Directly

To get started or if you have questions about the ecomSDK or your obligations, reach out to the ETA directly:

Key Actions — What to Do Next

• Check whether this applies to you — if you sell digital services B2B in Egypt, it does

• Visit the ETA ecomSDK portal and register for API access

• Contact the ETA e-commerce team if you have questions about getting set up

• Integrate the validation step into your checkout before processing B2B transactions

• Set a reminder to revalidate buyers when their UIN expires (annually)

Last updated: February 2026. Based on ETA guidance and Ministerial Decree No. 160 of 2023. This article is provided for general informational purposes only and does not constitute legal or tax advice. Tax laws and regulations are subject to change, and your specific circumstances may affect how they apply to your business. We recommend seeking independent advice from a qualified tax professional before making decisions relating to your Egyptian VAT obligations.