Compendium · Africa · Algeria
Algeria: VAT on digital services
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Not supported by the free-threshold API · Local term: Taxe sur la valeur ajoutée (TVA)
Last verified: 2026-10-30
Proposed: Algeria's draft 2027 Finance Bill would make non-resident operators of e-commerce platforms that sell remote, dematerialised services to customers in Algeria register electronically, collect Algerian VAT and file quarterly returns. No registration threshold is in the draft. Not yet law, and the draft gives no effective date
Proposed regime, not in force; not recorded in the API
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Threshold and rates (VAT)
- Free threshold?
- No — Proposed regime, not in force; not recorded in the API
- Amount / measure
- —
Proposed regime with no registration threshold in the draft (KPMG reading of the bill). Not in force - Window
- No threshold window (from the first sale)
- Standard rate
- 19.0%
General VAT rates 19% standard and 9% reduced; the draft sets no special rate for platform sales, so the general rates would apply (per KPMG) - Who must register
- Proposed: non-resident persons without a permanent establishment or permanent professional installation in Algeria that operate an e-commerce platform offering remote, dematerialised services taxable in Algeria. The explanatory memorandum's examples (streaming, music, storage, software subscriptions, network subscriptions) suggest direct sellers through their own site or app are covered too; implementing rules must confirm. Covers sales to both VAT-registered and unregistered customers; the reverse charge would no longer apply to sellers inside this regime
- Evidence of location
- Proposed: customer presumed in Algeria on any one of an Algerian invoice address, an Algerian-issued bank card, an Algerian IP address, or the Algerian phone country code. The draft sets no hierarchy between indicators and no express rebuttal
- Invoicing
- No specific invoicing rules in the draft; operators must keep a 10-year register of each sale (customer name and email, nature of service, invoice date, total billed, VAT collected)
- Filing
- Proposed: quarterly electronic VAT return with payment by the 20th day of the following month
- Effective
- Draft 2027 Finance Bill published 4 Oct 2026 and submitted to the National People's Assembly; the draft sets no effective date for this measure. Subject to parliament and implementing regulations
- Authority
- Direction Générale des Impôts (Ministry of Finance)
What Botchannels returns
- Ruleset version
2026-10-22.v1- Decision summary
- Botchannels does not open free-threshold sales here. Register (or appoint a representative) before selling.
- Product class
- Digital service
- Support status
- Not supported by the free-threshold API — Proposed regime, not in force; not recorded in the API
How to register
- Self-register online?
- No — Not yet — as of 2026-10-30 the dedicated electronic registration platform for non-resident platform operators does not exist; it depends on the 2027 Finance Law passing and on implementing regulations
- Resident representative / fiscal agent
- Not yet published for the proposed scheme
- Regime
- Proposed non-resident platform VAT collection (draft 2027 Finance Bill). Today, VAT on services from sellers established outside Algeria is self-assessed by the Algerian business customer (reverse charge); there is no foreign-seller B2C registration regime yet
Steps (in order)
- Monitor the Ministry of Finance and the Direction Générale des Impôts for the adopted 2027 Finance Law and implementing regulations — https://www.mfdgi.gov.dz/
- Do not register or charge Algerian VAT on remote digital B2C supplies until the law and the registration platform are live
- Prepare evidence of customer location: the draft presumes an Algerian customer on any one of an Algerian invoice address, an Algerian-issued bank card, an Algerian IP address, or the +213 phone code
Documents
- Not yet published — No dossier published as of 2026-10-30
- Official processing time
- Not yet published — scheme not open (unverified)
- Official fees
- Not yet published
- Portal
- https://www.mfdgi.gov.dz/
- Local bank account
- Not yet published
- Filing frequency
- Proposed: quarterly electronic return and payment by the 20th day of the month after the quarter
- Payment currency
- Not specified in the draft
- Input VAT recovery
- N/A until a live regime exists
- Portal language
- Arabic and French
- Penalties
- Proposed: after a 30-day formal notice, a DZD 5 million fine for not filing or paying, and possible suspension of access to the platform's website
Firms offering this service
Non-exhaustive. Not an endorsement. Confirm current offerings, licences, and fees directly with each firm before engaging
- KPMG Algeria — Member firm — published the draft-bill analysis
Official sources
KPMG TaxNewsFlash, 2026-10-14 — Algeria draft 2027 Finance Bill (secondary; official bill text not yet posted on mf.gov.dz)
Algérie Eco, 2026-10-10 — PLF 2027 draft provisions (secondary)
Ministry of Finance — Finance laws (2027 bill not yet listed as of 2026-10-30)
Last verified: 2026-10-30.
FAQ
- Is there a free VAT/GST threshold for foreign digital sellers in Algeria?
- Proposed regime, not in force; not recorded in the API
- How does a foreign seller register for VAT in Algeria?
- Proposed non-resident platform VAT collection (draft 2027 Finance Bill). Today, VAT on services from sellers established outside Algeria is self-assessed by the Algerian business customer (reverse charge); there is no foreign-seller B2C registration regime yet
- Is this tax advice?
- No. This page summarises official VAT/GST rules for foreign digital sellers. It is not tax or legal advice