Algeria VAT Guide 2026

Overview — TVA in Algeria

Value Added Tax (TVA) in Algeria is governed by the Code des Impôts Indirects and administered by the Direction Générale des Impôts (DGI). TVA is charged on the supply of taxable goods and services in Algeria, and on imports. Businesses registered for TVA must charge output TVA on their taxable supplies and may recover input TVA paid on their purchases. The net difference is remitted to the DGI or claimed as a refund. The standard TVA rate is 19%.

TVA Rates

Algeria applies three TVA rates depending on the type of supply:

• Standard rate — 19%: Applies to most goods and services, including electronics, vehicles, professional services, construction, and telecommunications.
• Reduced rate — 9%: Applies to basic necessities including food staples (bread, milk, oil, sugar), pharmaceutical products, medical equipment, agricultural inputs, and certain animal feed.
• Zero rate — 0%: Applies to exports of goods and services, international transport, and supplies related to hydrocarbon exploration and production.

TVA Registration Thresholds

Any person (individual or company) making taxable supplies must register for TVA if annual turnover exceeds DZD 5,000,000 for goods or DZD 2,500,000 for services. Registration is mandatory once the threshold is met. Businesses below the threshold may voluntarily register. The registration is done through the DGI. Upon registration, the taxpayer receives a taxpayer identification number (NIF) and must issue TVA-compliant invoices. Failure to register attracts penalties of up to 25% of the tax due.

TVA Returns — Monthly Filing

TVA-registered persons must file monthly TVA returns by the 20th day of the following month. The return declares output TVA, input TVA, and the net amount payable or refundable. Payments must be made by the same 20th deadline. Quarterly filing may be available for small businesses. Late filing attracts a penalty of 10% of the tax due, plus interest at 0.5% per month on unpaid amounts. TVA refunds are processed by the DGI and typically take 60–120 days.

Exempt Supplies

Certain supplies are exempt from TVA, meaning no TVA is charged and input TVA cannot be recovered. Exempt supplies include financial services (banking, insurance, reinsurance), educational services provided by accredited institutions, healthcare services, rental of residential property, and postal services. Businesses making both taxable and exempt supplies must partially recover input TVA based on the proportion of taxable supplies.

Import TVA

All imported goods are subject to TVA at the applicable rate (19% or 9%) on the CIF (cost, insurance, freight) value plus customs duty. Import TVA is paid at the port of entry before goods are released. Certain imports may be exempt, including raw materials used in manufacturing, capital equipment for qualifying investments, and goods for diplomatic missions. Registered businesses can claim import TVA as input TVA.

FAQs

What is the penalty for late TVA filing?

Late filing attracts a penalty of 10% of the tax due, increasing to 25% if beyond 30 days. Late payment attracts interest at 0.5% per month. The DGI may also issue enforcement notices to bank accounts.

Can I claim input TVA on imported services?

Yes, TVA-registered persons may claim input TVA on imported services subject to reverse charge TVA at the applicable rate, provided the services are used in making taxable supplies.

Are agricultural products subject to TVA?

Basic agricultural products are subject to the reduced rate of 9%. Processed agricultural goods are generally subject to the standard 19% rate. Agricultural inputs such as seeds and fertilisers benefit from the reduced rate.

How do I get a TVA refund?

TVA refunds are claimed in the monthly TVA return. The DGI processes refunds within 60–120 days, subject to verification. Exporters may qualify for expedited refund processing.

Disclaimer

This guide provides general information about Algerian TVA for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Algerian tax advisor or the Direction Générale des Impôts for advice specific to your situation. InvestmentKit does not provide tax advice.