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Algeria withdraws e-commerce and basic foodstuff VAT

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
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% 2022 Proposal in 2021/22 budget
Ivory Coast 18% 2022 -
Kenya 16% Sep 2013 -
Kuwait 5% Jan 2023? - 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
South Africa 15% Jun 2014 ZAR 1 million
Tanzania 18% Jul 2015 TZS 40 million Only resident
Tunisia 19% Jan 2020 Nil Withholding VAT; 3% Royalty Tax
Uganda 18% Jan 2020 Nil
United Arab Emirates 5% Jan 2018 AED 375,000
Zimbabwe 14.5% Jan 2020 Nil

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