Company VAT in Algeria 2026, Complete Guide

VAT rates in Algeria 2026

What is at 9 %: article 23 of the CTCA

The 9 % rate covers only what article 23 of the CTCA lists. Outside the list, the rate is 19 %.

• Vocational training and education: 9 % when the service is supplied by a State-approved enterprise (art. 23 CTCA, item rewritten by the 2026 Finance Act, art. 53). Without the approval, the rate is 19 %. The text also covers pre-school education and the accommodation and catering supplied directly by these establishments. The State approval is what gives you the 9 % rate.
• Health: medical acts are at 9 %, and since the 2026 Finance Act so are the catering and accommodation supplied to patients by health establishments. Medicines in the national drug nomenclature are exempt (art. 9), not at 9 %.
• Housing: construction of new homes, their servicing and their sale. Since the 2026 Finance Act (art. 53), the rate also covers the rehabilitation and servicing of old residential buildings.
• Passenger transport: taxis, rail transport and, since the 2026 Finance Act, passenger transport by bus. Not all transport is covered.
• Basic products listed in article 23 (examples): pasta and couscous, olive oil, dates, books, newspapers, household drinking water, sugar. The detailed list follows the customs tariff.
• Culture and press: shows, concerts, cinema tickets, printing and sale of newspapers and periodicals.
• Tourism: hotels, classified tourist restaurants, travel agencies and tourist vehicle rental benefit from a transitional 9 % rate (art. 42 of ordonnance 09-01, as rewritten by the 2020 supplementary Finance Act, art. 34). Check the period of application on the text in force.

Who is liable for VAT?

• IFU taxpayers: outside the scope of VAT (art. 8-2 CTCA, since the 2021 Finance Act, art. 37).
• Real and simplified regimes: liable to VAT on their taxable operations.
• Auto-entrepreneurs: they fall under the IFU, so they are outside the scope of VAT.
• Option: an IFU taxpayer may opt for the réel regime (art. 3 of the Code des procédures fiscales). VAT then applies.
• No VAT, no deduction: an IFU taxpayer does not deduct the VAT paid on purchases.

Online sales: which VAT rate?

The 9 % rate on sales made by electronic means, created by the 2020 Finance Act (art. 41), was repealed by the 2022 Finance Act (art. 94).

• Sales made by electronic means are subject to VAT (art. 2, point 14 CTCA), except for IFU taxpayers.
• They now follow the rate of the product sold: 19 % in most cases, 9 % if the product is in article 23, exempt if the product is exempt. To be checked case by case.
• An online seller under the IFU, or an auto-entrepreneur, charges no VAT (art. 8-2).

Filing and payment, the monthly G50

• Frequency: monthly, before the 20th of the following month (art. 76 CTCA).
• 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 payment: 10 % penalty from the day after the deadline, then an astreinte of 3 % per month or part month of delay from the first day of the month following the deadline, the total of both not exceeding 25 % (art. 402-2 CIDTA).
• Nil return: mandatory even when turnover is zero.

The right to deduct, how it works

• Condition: compliant invoices (supplier NIF + client NIF + VAT shown in detail).
• No deduction if an invoice above 1 000 000 DZD including tax is paid in cash (art. 30 CTCA).
• 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 (see below).
• Keeping invoices: ten years, like all accounting documents and supporting papers (art. 12 of the Code de commerce).

Refund of the VAT credit

• General rule: the credit must reach at least 1 000 000 DZD at the end of the quarter (art. 50 bis CTCA, 2025 Finance Act, art. 65).
• Application deadline: by the 20th of the month following the quarter at the latest (art. 50 quinquies CTCA, 2025 Finance Act, art. 66).
• Exporters of goods: exemption with the right to deduct and refund of the credit (arts. 13 and 50, point 1).
• Rate gap: a seller at 9 % who buys at 19 % can have the difference refunded (art. 50, point 3).

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: equipment acquired by labelled start-ups (2020 supplementary Finance Act, art. 33), goods under a suspensive customs regime (art. 11 CTCA).
• Required documents: DUM (Déclaration Unique Marchandises), invoices, certificate of origin.

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.

VAT audits, the trigger signals

• Gap between declared turnover and banked turnover (banks report to the DGI).
• Repeated VAT refund applications.
• Prolonged nil returns with no real inactivity behind them.
• 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, a company that is fully up to date can be audited with no prior signal at all.

The 8 frequent mistakes to avoid

• Forgetting to file for a month, even with nil turnover (the return is mandatory).
• 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 ten years (art. 12 of the Code de commerce).
• Applying for a VAT refund with a credit below 1 000 000 DZD, or after the 20th of the month following the quarter.
• Filing late, right before the deadline (Jibayatic saturates).
• Showing VAT on an invoice when you are under the IFU (forbidden, art. 64 CTCA, fine of 25 000 DZD).

Legal exemptions and preferential regimes

• Startup Label: equipment acquired by start-ups for the carrying out of their investment projects is exempt from VAT (2020 supplementary Finance Act, art. 33).
• Promoters eligible for ANADE, ANGEM or CNAC support: purchases of investment equipment and services in VAT franchise, under an agrément of the wilaya tax director and within an annual quota (arts. 42 to 49 CTCA).
• IFU auto-entrepreneur: outside the scope of VAT (5M DZD ceiling, art. 51 of the 2023 Finance Act).
• IFU micro-enterprise: outside the scope of VAT (a single 8 000 000 DZD annual turnover threshold, art. 282 ter of the CIDTA, 2022 Finance Act, art. 73).
• IFU and auto-entrepreneur invoices carry no VAT (art. 64 CTCA). Showing it is punished by a fine of 25 000 DZD (art. 114, as amended by the 2026 Finance Act, art. 59).
• Exports of goods: exempt with the right to deduct and refund (arts. 13 and 50 CTCA). There is no 0 % rate.
• Exempt products (art. 9): bread, bread flours and semolina, milk, medicines of the national nomenclature, personal insurance. Medical acts and approved education are not exempt: they are at 9 % (art. 23).