What are the VAT rates in Algeria?

Two main rates: 19 % (standard) on most goods and services, and 9 % (reduced) on basic products, transport and domestic tourism. A 0 % rate applies to exports. Some activities (health, education) are fully exempt.

What is the VAT liability threshold?

30 million DZD of annual turnover for services, 50 million DZD for trade and buy-and-resell. Below those thresholds: a simplified regime is possible with no VAT collection. Under the IFU regime (auto-entrepreneur / micro-enterprise): full exemption whatever the turnover.

How do you file VAT in Algeria?

Through the G50 form on Jibayatic (jibayatic.mf.gov.dz), every month, before the 20th of the following month. The G50 combines VAT + TAP + IRG withheld at source. Payment online by CIB/Edahabia or bank transfer. Filing is mandatory even with nil turnover.

Can VAT be deducted on every purchase?

No. VAT is deductible only on professional purchases backed by a compliant invoice (supplier NIF + client NIF + VAT shown in detail). Exclusions: passenger vehicles, meals outside assignments, certain personal expenses. Invoices must be kept for 10 years.

How do you obtain a VAT refund?

An application through Jibayatic + a paper file with supporting documents. Conditions: VAT credit above 500 000 DZD, compliant invoices, returns up to date. Timeline: 3 to 6 months minimum. Around 55 % are refused on the first pass, so preparing the file is critical.

Do auto-entrepreneurs pay VAT?

No. Under the IFU regime (single flat tax), auto-entrepreneurs and micro-enterprises are fully exempt from VAT. They do not collect it, do not deduct it and do not declare it. Only the annual IFU is due.

How does VAT on imports work?

VAT is due to Customs at the moment of clearance (not at the moment of purchase). Base: CIF value + customs duties. Rate: 19 % except for exceptions. Deductible on the G50 of the month in which it was paid. Possible exemptions: Startup Label, AAPI, priority equipment.

What are the penalties for filing VAT late?

10 % immediately + 3 % per month of delay, capped at 25 % of the amount due. Late-payment interest comes on top. Repeated late returns can trigger a tax audit. Jibayatic accepts online payment, so there is no excuse for being late.

Company VAT in Algeria 2026, Complete Guide

Everything about VAT in Algeria in 2026: rates (9 %, 19 %, 0 %), liability thresholds (30M for services / 50M for trade), the monthly G50 return on Jibayatic, the right to deduct, refund of the VAT credit, VAT on imports, Startup Label and AAPI exemptions. Plus the 8 frequent mistakes to avoid.

Content verified on July 31, 2026Our methodology

ByÉquipe UpGrowth, Fiscalistes d'entreprise & experts TVA

Published on April 24, 2026Updated on July 31, 2026

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VAT in Algeria, essential for every business in 2026

VAT (Taxe sur la Valeur Ajoutée) is the tax Algerian companies declare most often, every month through the G50 form. Since the 2020 Finance Act, the rates have been stabilized, the liability threshold raised, and electronic filing through Jibayatic made mandatory for medium-sized structures.

Handled properly, VAT is a simple formality. Handled badly, it can trigger tax reassessments, penalties larger than the tax itself, and blocked refunds that suffocate cash flow. This guide covers the rates, the thresholds, the regimes, the returns, and the mistakes to avoid.

VAT rates in Algeria 2026

The applicable rate depends strictly on the nature of the good or service, not on the company. Every sale must therefore be classified carefully.

Rate	Use	Examples
19 %	Standard rate	Services, capital goods, industrial products
9 %	Reduced rate	Basic products, transport, domestic tourism, certain medicines
0 %	Exports & international deliveries	Exported goods, services supplied abroad
Exempt	Excluded activities	Health, education, non-profit activities, unprocessed agriculture

VAT liability thresholds

Services threshold: 30 million DZD of annual turnover excluding tax.
Trade threshold (buy and resell): 50 million DZD of annual turnover excluding tax.
Below the threshold: a simplified regime is possible (with no VAT collection).
Under the IFU regime (auto-entrepreneur, micro-enterprise): full VAT exemption, whatever the turnover.
Crossing the threshold: liability becomes mandatory from the following month.
Voluntary option: possible even below the threshold (useful in order to deduct the VAT on purchases).

Not every company collects VAT. Liability depends on the annual turnover and on the tax regime chosen.

Filing and payment, the monthly G50

Frequency: monthly, before the 20th of the following month.
Platform: Jibayatic (https://jibayatic.mf.gov.dz), mandatory for most companies.
Content: turnover excluding tax by VAT rate, VAT collected, deductible VAT, balance payable or credit.
Payment: online through Jibayatic (CIB card, Edahabia) or bank transfer.
Late filing: 10 % + 3 % per month, capped at 25 %.
Nil return: mandatory even when turnover is zero.

The G50 form is the heart of the monthly tax return. It combines VAT + TAP + IRG withheld at source on salaries.

The right to deduct, how it works

Condition: compliant invoices (supplier NIF + client NIF + VAT shown in detail).
Eligible goods: raw materials, merchandise, equipment, professional services.
Non-eligible goods: passenger vehicles, meals and accommodation outside assignments, certain personal expenses.
VAT on fixed assets: deductible according to the ratio of taxable turnover to total turnover (pro rata).
VAT credit: if deductible VAT is greater than collected VAT, it can be carried forward to the following months or refunded.
Keeping invoices: 10 years minimum as evidence in case of an audit.

The VAT paid on professional purchases can be deducted from the VAT collected on sales. This is the central VAT mechanism, the one that avoids tax cascading.

Refund of the VAT credit

Conditions: credit above 500 000 DZD, compliant invoices, returns up to date.
Typical cases: exporters (0 % VAT on sales), investors in imported equipment, new entrants in the depreciation phase.
Procedure: application through Jibayatic + a paper file with supporting documents.
Timeline: 3 to 6 months minimum.
Grounds for refusal: non-compliant invoices, invalid supplier NIF, mismatch between declared turnover and bank records, suspicion of fraud.
Alternative: offset against future IBS if the refund is refused.

Exporting companies, or companies investing heavily in equipment, can end up with a structural VAT credit. A refund is possible but selective: the DGI refuses around 55 % of applications on the first pass.

VAT on imports

Tax base: CIF value + customs duties + specific duties.
Rate: 19 % except for exceptions (basic products 9 %, exemptions).
Payment: at the moment of customs clearance, and it blocks release from the port.
Deduction: on the G50 of the month in which the import VAT was paid.
Possible exemption: Startup Label, AAPI regime, certain priority sectors (production equipment).
Required documents: DUM (Déclaration Unique Marchandises), invoices, certificate of origin.

For companies importing goods, VAT is due to Customs at the moment of clearance, not at the moment of purchase. It then becomes deductible in the monthly return.

Jibayatic, the mandatory DGI platform

Registration: automatic once the NIF has been issued.
Authentication: login and password + OTP on a verified phone number.
Modules: G50 returns, annual IBS, IFU, VAT refund, filing history.
Online payment: CIB, Edahabia, simplified bank transfer.
Advantages: no travel, electronic receipt, history available online.
Drawbacks: the platform can be slow, especially at the end of the month (filing day).
Recommendation: file 5 to 10 days before the deadline to avoid the load peaks.

Since 2022, most tax returns are filed through Jibayatic (the portal of the Direction Générale des Impôts). The portal keeps evolving, so here are a few practical rules:

VAT audits, the trigger signals

Gap between declared turnover and banked turnover (banks report to the DGI).
Repeated VAT refund applications (more than 2 per year).
Prolonged nil returns (more than 3 months in a row with no activity).
Gap between the CNAS DAS (payroll) and the salary charges declared for IBS.
Clients or suppliers already under reassessment (chain effect).
External reporting (former employees, competitors, unhappy clients).
Statistical random selection (around 5 % of companies per year in Algeria).

The 8 frequent mistakes to avoid

Forgetting to file for a month (even with nil turnover), an automatic penalty.
Applying the wrong VAT rate to a sale (confusing 9 % and 19 %).
Deducting the VAT on a passenger vehicle (not deductible).
Accepting a supplier invoice with no NIF (not deductible).
Not keeping purchase invoices for 10 years (rejected during an audit).
Applying for a VAT refund without a flawless file (refusal + audit).
Filing late, right before the deadline (Jibayatic saturates).
Mixing the réel regime and the IFU regime on the same activity (incompatible).

Legal exemptions and preferential regimes

Startup Label: 0 % VAT on imported equipment for 4 years.
AAPI (structuring investment): VAT exemption on imported equipment and raw materials.
IFU auto-entrepreneur: full VAT exemption under the regime (5M DZD ceiling).
IFU micro-enterprise: full VAT exemption (a single 8 000 000 DZD annual turnover threshold, art. 282 ter of the CIDTA).
Exports: 0 % VAT on sales abroad, with deduction of the VAT on purchases still possible.
Activities exempt by law: health, education, non-profit association activities.

Some activities or schemes allow you to be fully or partly exempt from VAT.

À noter

Audit TVA offert

55 % de refus de remboursement TVA au premier passage DGI. Un dossier parfait passe à 90 %. Montage propre = accord rapide.