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 | |
| Burkina Faso | 10% | Jan 2025 | ||
| Botswana | 14% | Jun 2026 | - | |
| Cameroon | 19.5% | Jan 2020 | XAF 50 million | |
| Cape Verde | 15% | Jan 2022 | Nil | |
| Chad | 17.5% | Jan 2024 | Extending to platforms Jan 2025 | |
| Congo, Democratic Republic | 16% | Jul 2026 | - | |
| Egypt | 14% | Sep 2016 | EGP 500,000 | |
| Ethiopia | 15% | Aug 2024 | ETB 2 million | |
| Ghana | 20% | Apr 2022 | GHS 200,000 | |
| Guinea | 18% | Jan 2016 | Nil | |
| Israel | 18% | TBC | – | Proposals withdrawn |
| Ivory Coast | 18% | 2022 | - | |
| Jordan | 16% | JOD 30,000 | ||
| Kenya | 16% | Sep 2013 | - | Registration threshold removed 2023 |
| Kuwait | 5% | Jan 2024? | - | TBC |
| Liberia | 18% | 2026 | ||
| Madagascar | 20% | Nil | Collections via fiscal rep | |
| Malawi | 17.5% | Apr 2026 | ||
| Mauritania | 16% | Aug 2026 | ||
| Mauritius | 15% | 2026 | MUR 3m | |
| Morocco | 20% | 2024 | ||
| Mozambique | 16% | 2026 | Nil | |
| Niger | 19% | Jan 2025 | ||
| Nigeria | 7.5% | Jan 2020 | $25,000 | |
| Oman | 5% | Apr 2021 | OMR 35,000 | |
| Rwanda | 18% | Apr 2026 | ||
| Saudi Arabia | 15% | Jan 2018 | Nil | |
| Senegal | 18% | Jul 2024 | Nil | Fiscal representative required |
| Sierra Leone | 15% | Jan 2021 | SLE 100,000 | No non-resident rules |
| South Africa | 15% | Jun 2014 | ZAR 1 million | |
| Tanzania | 18% | Jul 2022 | Nil | Residents since Jul 2015 |
| Togo | 18% | Feb 2026 | Nil | |
| 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 | |
| Zambia | 16% | Jan 2024 | Fiscal Representative req'd | |
| Zanzibar | 18% | Jan 2027 | ||
| Zimbabwe | 15.5% | Jan 2020 | Nil |
