Tourism businessesDoes Your Restaurant or Café in Sharm Charge 14% VAT? The ETA Criteria ExplainedWhether a restaurant or café in Sharm El Sheikh charges 14% VAT depends on its licence and on the criteria the Egyptian…
Restaurants and cafés · Law 8/2022 · 14% VAT · e-receipts
Restaurant License in Egypt:
Opening a Restaurant or Café in Sharm El Sheikh
A restaurant licence in Egypt comes on one of two tracks: a tourist restaurant licensed by the Ministry of Tourism under Law 8/2022, or an ordinary shop licence that may not use the word "tourist". The track decides your VAT, your alcohol and shisha licences and your staff approvals. We set your company up and keep it compliant, from Sharm El Sheikh.
- Chartered Accountant (محاسب قانوني)
- Office 314, Al Azizia Mall, Sharm El Sheikh
- Rules checked October 2026
- Arabic, English, Italian, Russian
01What we do for you
Set up and kept compliant: our work for restaurants and cafés
Opening day is the first step. We stay for the returns, the payroll and the renewals.
01Track and address checkWe place your concept and premises against the two licensing tracks, the ETA's VAT criteria and Decree 128/2022 before you sign anything.Sinai company rules02Company and registrationsSole establishment, one-person company, LLC or joint stock company, then the Commercial Register and the tax card.Licences and registrations03Licence fileThe Ministry of Tourism file under Law 8/2022, with the alcohol, shisha and manager licences and chamber membership, or the shop-licence route.Tourism businesses04VAT and e-receiptsVAT registration and returns, e-receipt and e-invoice set-up, and checks that the rate on each receipt matches the return.VAT service05Payroll and staff permitsSocial insurance, Universal Health Insurance, quarterly payroll returns, and the Labour and Ministry of Tourism approvals for foreign staff.Payroll06Books, returns and the seasonMonthly books, the annual return, and a calendar of what falls due in the quiet months, so cash is set aside in the busy ones.Accounting
02Licence map
How to open a restaurant in Egypt: from company to first e-receipt
Each step with its authority and typical wait, as of October 2026. Time ranges, never promises: the approvals set the pace.
- 01
Company or sole establishment
Egyptian owners can use a sole establishment, a one-person company (EGP 1,000 capital) or an LLC (no statutory minimum). In Sharm or Dahab, Decree 128/2022 requires a non-Egyptian project to be an Egyptian joint stock company.
- 02
Commercial Register
A fixed fee, plus a fee per branch. Renewed every five years; a late application within 90 days pays double.
- 03
Tax card and e-invoicing
Standard activities get the normal five-year tax card. The 8-month temporary card introduced in July 2026 cannot issue e-invoices, a problem if you will supply hotels or other businesses.
- 04
VAT registration
Compulsory once turnover reaches EGP 500,000. The track and the ETA criteria decide whether your meals carry 14%.
- 05
Sector licence
Tourist track: the Ministry of Tourism decides within 30 working days or the application is deemed initially approved; other agencies have 45 days or are deemed to approve; the licence follows within 30 days. Shop track: a licence under Public Shops Law 154/2019.
- 06
Alcohol, shisha, manager and chamber
On the tourist track: the alcohol and shisha licences, the manager's licence and membership of the tourism chamber under Law 27/2023.
The order matters. Sign the lease after the Sinai check, and settle the track before you register for tax, so that the tax card, the VAT position and the e-receipts all match the licence.
03Why us
Why clients in Sharm choose us
Opening a Restaurant or Café in Sharm El Sheikh, handled by one chartered accountant from your first question to the final registration. How much does it cost to open a restaurant in Egypt? It depends on the licence route and the premises; we give you an itemised quote. Related guides: E-Invoice and E-Receipt Setup in Egypt, E-Receipts in Egypt, Does Your Restaurant or Café in Sharm Charge 14% VAT? The ETA Criteria Explained.
+100 businesses servedHotels, restaurants, dive centres, shops and investors in Sharm El Sheikh trust us with their files.
A chartered accountant on your fileYour file is prepared and followed by a Chartered Accountant (محاسب قانوني) and tax expert.
On the ground in SharmOffice 314, Al Azizia Mall, close to the authorities your file goes through. Open every day, 09:00–23:00.
Four languagesArabic, English, Italian and Russian, with the same facts in each.
FAQ
Open a restaurant in Sharm El Sheikh, Egypt: questions
Restaurant licence in Egypt: cost? And what about a café licence in Egypt?
Government fees are set by law as ranges. As of October 2026, a Law 8/2022 tourist licence has one fee covering all agencies, plus an inspection fee, both set by the Ministry of Tourism. Alcohol or shisha licences and the manager licence each add their own fee. Our own fee depends on your file.
Can a café without a tourist licence call itself a tourist café?
No. A shop licensed under Public Shops Law 154/2019 may not call itself "tourist", so a "tourist café" sign over an ordinary shop licence breaks that rule. To present the outlet as tourist, it needs the Ministry of Tourism licence under Law 8/2022, which also puts its meals and drinks into 14% VAT.
Does my restaurant in Sharm El Sheikh have to charge 14% VAT?
If the Ministry of Tourism licenses it as a tourist restaurant, yes. Otherwise its meals are exempt unless it meets one ETA criterion: a mall, compound, tourist site or airport location, a chain or known brand, app or website sales, tourist-standard service, or a service fee. Registration itself becomes compulsory at EGP 500,000 turnover.
Can a foreigner open a restaurant in Sharm El Sheikh?
Yes, through a company. Under Decree 128/2022, a non-Egyptian project in Sharm El Sheikh or Dahab must be an Egyptian joint stock company, with at least three founders and EGP 250,000 issued capital. The decree sets no minimum Egyptian share, but the company cannot own land, and later shareholder changes need security and GAFI or FRA approval.
Do I need e-receipts if my café is VAT-exempt?
Yes, in Sharm El Sheikh. ETA Decision 484/2022 requires every income-tax and VAT taxpayer selling to consumers in the Sharm El Sheikh area to issue e-receipts, from 1 November 2022. An exempt café is still an income-tax taxpayer. Sales to hotels or other businesses need e-invoices, and costs without either document are not recognised.
Related guides
Tourism businessesDoes Your Restaurant or Café in Sharm Charge 14% VAT? The ETA Criteria ExplainedWhether a restaurant or café in Sharm El Sheikh charges 14% VAT depends on its licence and on the criteria the Egyptian…Free consultation
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