Inflation worries lead to suspension of 19% VAT on digital services and key foodstuffs
The council of ministers has last week announced the zero-rating of a number of supplies as inflation rates gather pace. This includes the reversal of the January 2022 rise to 19% for digital services. This includes e-commerce, mobile phones and laptops/tablets.
The VAT rate change came into effect on 13 February 2022.
VAT on digital services 2020
Algeria levies VAT on a number of digital services since January 2020. These include:
- Search engine
- Domain name and support
- Sales operations carried by electronic means, including internet platforms.
Once registered, VAT returns are due on a monthly basis.
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Africa & Middle East VAT on digital services
Comments (click for details) | Rate | Date | Threshold | Comments |
Algeria | 9% | Jan 2020 | Nil | |
Angola | 14% | Oct 2019 | – | |
Bahrain | 10% | Jan 2019 | Nil | |
Benin | 18% | Oct 2023 | TBC | |
Cameroon | 19.5% | Jan 2020 | XAF 50 million | |
Egypt | 14% | Sep 2016 | EGP 500,000 | |
Ghana | 12.5% | Apr 2022 | GHS 200,000 | |
Israel | 17% | TBC | – | Proposals withdrawn |
Ivory Coast | 18% | 2022 | - | |
Kenya | 16% | Sep 2013 | - | Registration threshold removed 2023 |
Kuwait | 5% | Jan 2024? | - | TBC |
Mauritius | 15% | 2020 | ||
Nigeria | 7.5% | Jan 2020 | $25,000 | |
Oman | 5% | Apr 2021 | OMR 35,000 | |
Rwanda | 18% | TBC | ||
Saudi Arabia | 15% | Jan 2018 | Nil | |
Senegal | 18% | Jan 2023 | Nil | Fiscal representative required |
Sierra Leone | 15% | SLE 100,000 | ||
South Africa | 15% | Jun 2014 | ZAR 1 million | |
Tanzania | 18% | Jul 2022 | Nil | Residents since Jul 2015 |
Tunisia | 19% | Jan 2020 | Nil | Withholding VAT; 3% Royalty Tax |
Uganda | 18% | Jan 2020 | UGX 150m | |
United Arab Emirates | 5% | Jan 2018 | AED 375,000 | |
Zimbabwe | 14.5% | Jan 2020 | Nil | |
Zambia | 16% | 2024? |