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|
|Cameroon||19.5%||Jan 2020||XAF 50 million|
|Egypt||14%||Sep 2016||EGP 500,000|
|Ghana||12.5%||Apr 2022||GHS 200,000|
|Kenya||16%||Sep 2013||-||Registration threshold removed 2023|
|Oman||5%||Apr 2021||OMR 35,000|
|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|