| Indirect tax snapshot | |
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What are the current rate(s) of VAT?
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Are there any confirmed or anticipated changes to these rates?
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No.
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What is the principal indirect tax?
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Value Added Tax (VAT) is the principal indirect tax in Algeria. It is a tax on consumer expenditure and is collected on business transactions and imports.
There are other Indirect Tax regarding some goods like (Liquors, Cigarettes, Alcohol, Gold, Silver, Platinum…etc.).
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Is there a registration limit for the tax?
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All companies (Legal Entities), Permanent Establishment not taxed under the WHT regime, Algeria are considered liable for VAT registration. However, natural persons engaged in industrial, commercial, professional, or craft activities, as well as traditional craft cooperatives and professional civil societies, whose annual turnover does not exceed eight million dinars (8,000,000 DZD), except for those who have opted for the VAT registration or the simplified regime for non-commercial professions, as well as certain activities listed in Article 282ter of the Direct Tax Code.
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Does the same registration limit apply to non-established businesses?
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Non-established businesses are liable for VAT registration when they constitute a Permanent Establishment, except those subject to the WHT regime.
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Does a non-established person need to appoint a fiscal representative in order to register?
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In Algeria, non-established persons (foreign businesses or individuals without a physical presence in the country) must designate a fiscal representative to register for VAT and meet their obligations.
The fiscal representative, who must be a person based in Algeria, is responsible for ensuring compliance with Algerian tax laws on behalf of the non-established business. This includes managing tax-related matters such as VAT registration, filing returns, and handling all necessary interactions with the Algerian tax authorities.
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How often do returns have to be submitted?
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The VAT return have to be submitted once a month (before the 20th of next month).
For liberal professions, the VAT declaration is made quarterly.
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Are penalties imposed for the late submission of returns/payment of tax?
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Yes, penalties are imposed for the late submission of returns/payment of tax.
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Are any other declarations required?
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Yes, from 2021, to deduce the VAT on purchases, a statement relating the amounts of invoices (included VAT amounts and VAT), with the supplier’s information, must be added to the monthly tax declaration with an Excel file on CD.
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Are penalties imposed in other circumstances? |
Yes. Penalties can be imposed for errors, omissions, or late declaration. Also, in case of payment issues (check rejected from bank).
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Can the tax incurred by overseas businesses be claimed if they are not registered in your country?
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No.
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Deduction of VAT
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The deduction of VAT is made for the month or quarter during which it is paid. The deduction is possible under certain conditions, including:
VAT that has not been deduced within the time limit (omission cases) may be entered on subsequent declarations until December 20th of the following year of the omission date. It must be entered separately on the tax declaration, from the deductible taxes relating to the current reporting period. |
The principal indirect tax in Algeria is the Value Added Tax (VAT).
Yes, there is a registration limit for natural persons for the VAT in Algeria.
Natural Persons are required to register for VAT if their annual turnover exceeds 8 million DZD. If a business's turnover is below this threshold, it is not obligated to register for VAT, but it may choose to voluntarily register if it wishes to recover VAT on its purchases.
No, the VAT registration limit in Algeria does not apply to non-established businesses.
No, but in accordance to article 83 of the Turnover Tax Code, when a sale or service is made by a taxable person established outside Algeria, the tax is self-assessed and paid by the purchaser or the beneficiary of the services.
Yes. In accordance with Article 63 of the Turnover Tax Code, any person who does not have an establishment in Algeria and carries out transactions subject to VAT must appoint a fiscal representative domiciled in Algeria who undertakes to complete the formalities to which the taxable persons are subject and to pay this tax in the place of the said person. The representative of the client who does not have an establishment in Algeria fills the tax return and pays the tax and related penalties on his behalf.
Any person carrying out transactions subject to VAT is required to submit the VAT return within twentieth (20) days following the calendar month to the tax collector, where the establishment is located.
When the filing deadline expires on a statutory holiday, the deadline is extended to the next business day.
If during a month, there has been no transaction giving rise to turnover taxes, the taxpayer must submit to the tax office ‘Nil’ declaration.
The payment of all the tax due for a taxable person according to the statement submitted, is made at the time of the submission or sending of the return.
Taxpayers registered under the Large Companies Tax Direction ‘DGE’ level or at the Tax Centers (CID) are required to make their declarations via the website relating to e-declaration and e-payment (JIBAYATIC).
Yes, penalties for late submission of returns/payment of the VAT are imposed.
No.
In the case of fraudulent maneuvers, a fine of 100% is applicable.
(Article 116 of the Turnover Tax Code)
No, overseas businesses (non-established businesses) cannot claim VAT incurred on expenses in Algeria if they are not registered for VAT in the country.
To claim VAT on purchases in Algeria, a business must be VAT-registered in Algeria, regardless of whether it is a domestic or overseas business. If an overseas business is not registered for VAT in Algeria, it does not have the right to reclaim VAT paid on expenses or purchases made in the country.
A VAT invoice must show:
Mentions relating to the seller:
Mentions relating to the buyer:
If the buyer is a non-tax registered person (final consumer), the invoice must mention his name and address.
The invoice shall be stamped and signed by the seller, except when it is established by telematics.
No, there is not a current or anticipated Standard Audit File for Tax (SAF-T).
For further information on indirect tax in Algeria please contact:
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Rafik Boussa |
Sofiane Bilek |
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Ali Bensadok |
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