Algeria levies a value-added tax (VAT) on the supply of all goods and services in the country. Effective 1 January 2017, the standard rate of VAT is 19%, whilst a reduced rate of 9% applies to certain supplies, and certain other supplies are exempted.

Reduced Rate of 9% Supplies Include:

Services related to printing;
Materials for agriculture;
Inputs for aquaculture farming (effective 1 January 2024);
Traditional crafts;
Plants and domestic animals;
Supply of natural gas for consumption of less than 2500 thermal units per quarter;
Supply of electrical energy, for low-voltage electricity consumption of less than 250kw per quarter;
CKD (complete knocked down) and SMD (semi-knocked down) kits; and
Services related to tourist activities, hotels, spas, classified tourist catering, travel, and renting of tourist transport vehicles (until 31 December 2024).

Exempt Supplies Include:

Export of goods and services;
Certain locally produced food items such as fresh fruits and vegetables, eggs, chicken meat, turkey, as well as peas, chickpeas, beans, lentils, fava beans, other dried pod vegetables, and different types of rice (until 31 December 2024);
Services related to internet access and web-related activities, including fixed internet access services, bandwidth rental for fixed internet services, web server hosting, design, development as well as maintenance and support expenses for websites (until 31 December 2026);
Goods acquired locally or donated to the Algerian Red Crescent or to associations or works of a humanitarian nature when they are intended for free distribution (effective 1 January 2021); and
Constructions and services relating to the prospecting, research, exploitation, liquefaction, or pipeline transport of liquid and gaseous hydrocarbons.

Effective 13 February 2022, in order to provide relief from the impact of the rising prices, Algeria has frozen all taxes and duties on certain consumer and food products. Further, the taxes on e-commerce, mobile phones, and computer equipment for personal use and start-ups are abolished.

Registration Threshold

There is no specific VAT registration threshold in Algeria.

Returns and Payments

Taxpayers are required to submit VAT returns and make VAT payments on a monthly basis within 20 days of the following month. Taxpayers are required to declare exempt turnover in their monthly declarations along with the taxable turnover.

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