Egyptian hotel rates carry a 12% service charge, a 1% city tax and 14% VAT. Each is charged on top of the one before, so together they come to 28.96%, not 27%.
How it is worked out
- Service charge is 12% of the room rate.
- City tax is 1% of the room rate plus the service charge.
- VAT is 14% of the room rate plus the service charge and city tax.
A worked example
| Room rate | EGP 2,000.00 |
|---|---|
| Service charge 12% on 2,000.00 | EGP 240.00 |
| City tax 1% on 2,240.00 | EGP 22.40 |
| VAT 14% on 2,262.40 | EGP 316.74 |
| Total | EGP 2,579.14 |
What to watch for
- Restaurant bills follow the same pattern without the city tax: service charge first, then VAT on the total.
Doing this in Zitlin
Add a tax under Settings with Service Charge, City Tax and VAT in that order, and tick the box on City Tax and on VAT so each is charged on top of the rows above it.
Frequently asked questions
How much tax is on an Egyptian hotel bill?
28.96% on the room rate: 12% service charge, 1% city tax on the rate plus service, and 14% VAT on all of that. EGP 100 comes to EGP 128.96.
Does Zitlin work this out on the invoice?
Yes. Each component can be charged on top of the ones above it, and the invoice prints what each was charged on. Invoicing is on the free plan.
Sources
- Kwentra: tax definition under Egyptian tax law
- Andersen: hotel taxes in Egypt
- Gosufra: 14% VAT on restaurant bills in Egypt
Checked November 2026. This is a guide rather than tax advice, and rates change. Confirm yours with the Egyptian Tax Authority or your accountant.