Egypt restaurant VAT and service charge: the 14% rule

An Egyptian restaurant charges 14% VAT, that tax must already be inside the price shown to the customer, and the bill should be an Egyptian Tax Authority (ETA) electronic receipt. The figures many people quote — a 5% "tourist restaurant" rate or a 10% "table-service" tax — are not the rate the ETA applies to restaurants. In May 2025 the ETA publicly stated that tourist-licensed restaurants pay 14%, and warned against videos promoting a 5% rate. This guide gives the correct position with sources. It is general information, not tax or legal advice; confirm your own case with the Egyptian Tax Authority.

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The 14% rule — and why 5% and 10% are wrong

Egypt's standard VAT rate is 14%, and it is the rate that applies to restaurants — dine-in, takeaway and delivery. Two wrong figures circulate widely:

• "5% tourist-restaurant VAT" is false. In May 2025 the Egyptian Tax Authority stated publicly that tourist-licensed restaurants are taxed at 14%, not 5%, and said it would take action over misleading videos promoting the 5% claim.
• "10% table-service tax" is a mix-up. Egypt does have a 10% schedule tax (ضريبة الجدول), but it applies to professional, consultancy and contracting services — not to restaurant table service. Restaurants fall under ordinary 14% VAT.

A non-tourist restaurant becomes VAT-liable once it passes the registration threshold or meets triggers such as operating in a mall or tourist site, trading under a well-known trademark, or selling through an app or website. If you take online orders, that last trigger usually applies — so plan for 14% VAT from the start.

How to show it in Menuthere

Egyptian consumer law requires tax-inclusive display, so you type each dish's final, all-in price into Menuthere and that is what the customer pays. Set your online ordering for Egypt once and the same prices show on your website, QR menu and WhatsApp orders.

Tax-inclusive pricing

Egypt's Consumer Protection Law (Law No. 181 of 2018) requires suppliers to announce prices inclusive of all taxes and legally-imposed financial charges. For a restaurant, that means the price on your menu should be the final total the customer pays, with VAT included — not a base price with tax added at the till. If you add a service charge, it should be clear to the customer before they order.

Service charge: customary, not a fixed law

Many Egyptian restaurants, especially tourist and upscale venues, add a service charge of around 10–12%. This is a market convention, not a fixed statutory rate — there is no law that sets a mandatory 12% for all restaurants. Two things to keep in mind:

• Where a restaurant does add a service charge, that charge is treated as business revenue and is itself subject to 14% VAT.
• Tourism establishments are separately regulated on how a service charge, once levied, is distributed to staff.

So: a service charge is optional in law, but if you add one, price it inclusively and apply VAT to it.

E-receipts: mandatory, rolled out by taxpayer

The ETA's e-receipt system (for B2C sales) is mandatory and explicitly covers restaurants and cafés. A covered business issues a digitally-signed e-receipt transmitted to the ETA in real time, carrying a QR code — not a plain paper slip. The mandate is being rolled out to named sectors and taxpayer lists rather than switching on for every restaurant nationwide on one date, so check whether your business is in a current wave. Non-compliance carries penalties under the relevant tax law.

Licensing: Law No. 8 of 2022

Restaurant and tourism-establishment licensing in Egypt is governed by Law No. 8 of 2022 (Hotels and Tourist Establishments), issued in March 2022, which replaced the older Law No. 1 of 1973 that many online guides still cite. The law defines a restaurant broadly (including takeaway restaurants, food trucks and cafeterias) and sets licensing, safety and service standards through the competent ministry. A tourism-classified restaurant sits under this tourism regime; an ordinary commercial restaurant operates under general commercial and municipal licensing. Confirm which route applies to your venue before you apply.