Algerian VAT on non-resident digital services overhaul

Algeria’s draft Finance Law for 2027 proposes new VAT collection and reporting obligations for non-resident e-commerce platforms and digital service providers. The measures would strengthen the country’s existing VAT regime for foreign digital services, introduced in January 2020.

The draft legislation was approved by the Council of Ministers on 5 October 2026 and presented to the National Assembly on 12 October.

New VAT obligations for digital platforms

The proposals would introduce:

• Platform VAT collection: Non-resident e-commerce platforms would be required to collect and remit VAT on digital services sold remotely to Algerian consumers.
• Quarterly VAT returns: Foreign platform operators would be subject to quarterly VAT filing obligations.
• Expanded VAT scope: Digital sales of goods and services, together with commission fees charged by domestic and foreign platforms, would be explicitly included within the VAT regime.
• B2B reverse charge: Reverse charge obligations would remain applicable to business transactions, while B2C supplies would be excluded.

New customer location tests

The draft law would clarify when digital services are considered consumed in Algeria and therefore subject to Algerian VAT.

A supply would be presumed taxable in Algeria where the customer:

• Uses an Algerian IP address;
• Pays using an Algerian bank card; or
• Provides an Algerian billing address.

Transactions claimed to take place outside Algeria could also be deemed domestic where their offshore status cannot be substantiated.

Additional platform reporting obligations

Digital platforms facilitating peer-to-peer rentals, including accommodation and vehicles, or other services would face mandatory registration and annual reporting requirements.

Platforms would be required to report seller identities, transaction volumes and revenues by 31 January each year.

Existing Algerian VAT on digital services

Algeria introduced VAT on digital services supplied by foreign providers to domestic consumers on 1 January 2020. The original regime applied a reduced 9% VAT rate until 2022, compared with the standard 19% rate.

The scope included search engines, domain name services and transactions conducted through electronic platforms.

The 2027 proposals would introduce more explicit rules governing non-resident platform liability, VAT collection and customer location.

VAT Calc’s global VAT and GST on digital services blog keeps a live update on how countries are imposing indirect taxes on non-resident providers and electronic marketplaces.

Africa & Middle East VAT on digital services