The Monthly VAT Return: What to Check Before You File

VAT returns in Egypt are filed monthly, within the month following the end of the tax period. Late filing or late payment triggers a delay charge calculated on a monthly basis.

Pre-filing checklist

• Reconcile total sales on the return against the revenue account in the general ledger.
• Review purchase invoices eligible for input tax credit and confirm they appear on the e-invoicing platform.
• Check exempt sales and zero-rated exports, and keep the supporting documents on file.
• Review credit and debit notes issued during the period.
• Confirm the carried-forward credit balance from the previous month is correctly brought in.

Where the differences usually come from

Most discrepancies come from invoices issued at month end but booked in the following month, or from sales returns with no credit note issued. Clear these before submitting, because amending a filed return is far more painful than getting it right the first time.

One habit worth keeping

Maintain a monthly reconciliation file linking the return to the financial statements. It is the first thing you will be asked for in any subsequent tax inspection.