Indirect tax - Algeria

The principal indirect tax in Algeria is the Value Added Tax (VAT).

Yes, there is a registration limit for natural persons for the VAT in Algeria.

Natural Persons are required to register for VAT if their annual turnover exceeds 8 million DZD. If a business's turnover is below this threshold, it is not obligated to register for VAT, but it may choose to voluntarily register if it wishes to recover VAT on its purchases.

No, the VAT registration limit in Algeria does not apply to non-established businesses.

No, but in accordance to article 83 of the Turnover Tax Code, when a sale or service is made by a taxable person established outside Algeria, the tax is self-assessed and paid by the purchaser or the beneficiary of the services.

Yes. In accordance with Article 63 of the Turnover Tax Code, any person who does not have an establishment in Algeria and carries out transactions subject to VAT must appoint a fiscal representative domiciled in Algeria who undertakes to complete the formalities to which the taxable persons are subject and to pay this tax in the place of the said person. The representative of the client who does not have an establishment in Algeria fills the tax return and pays the tax and related penalties on his behalf.

Any person carrying out transactions subject to VAT is required to submit the VAT return within twentieth (20) days following the calendar month to the tax collector, where the establishment is located.

When the filing deadline expires on a statutory holiday, the deadline is extended to the next business day.
If during a month, there has been no transaction giving rise to turnover taxes, the taxpayer must submit to the tax office ‘Nil’ declaration.

The payment of all the tax due for a taxable person according to the statement submitted, is made at the time of the submission or sending of the return.

Taxpayers registered under the Large Companies Tax Direction ‘DGE’ level or at the Tax Centers (CID) are required to make their declarations via the website relating to e-declaration and e-payment (JIBAYATIC).

Yes, penalties for late submission of returns/payment of the VAT are imposed.

No.

In the case of fraudulent maneuvers, a fine of 100% is applicable.
(Article 116 of the Turnover Tax Code)

No, overseas businesses (non-established businesses) cannot claim VAT incurred on expenses in Algeria if they are not registered for VAT in the country.

To claim VAT on purchases in Algeria, a business must be VAT-registered in Algeria, regardless of whether it is a domestic or overseas business. If an overseas business is not registered for VAT in Algeria, it does not have the right to reclaim VAT paid on expenses or purchases made in the country.

A VAT invoice must show:

Mentions relating to the seller:

• Name of the person or corporate name
• Address
• Legal form and nature of the activity
• Share capital
• Trade register number
• Statistical Identification Number
• Method of payment and date of payment of the invoice
• Date and number of the invoice
• Name and quantity of goods or services provided
• Unit price
• Total price
• Nature and rate of taxes/rights/contributions due, depending on the nature of the goods sold/services provided
• Total price including all taxes, in numbers and letters. 

Mentions relating to the buyer:

•  Name or corporate name
• Legal form and activity
• Address, phone, fax numbers and the e-mail address
• Trade register number
•  Statistical Identification Number.

If the buyer is a non-tax registered person (final consumer), the invoice must mention his name and address.

The invoice shall be stamped and signed by the seller, except when it is established by telematics.

No, there is not a current or anticipated Standard Audit File for Tax (SAF-T).