3 February 2020
Algeria has extended its Value-Added Tax (VAT) system to cover digital services supplied by non-resident (foreign) companies to consumers in the country.
Prior to January 2020, foreign businesses providing digital services to consumers in Algeria did not have to charge VAT on their sales. However, in an effort to remove the unfair advantage this gave to non-resident companies over Algerian resident providers, the Algerian government announced that VAT at 9% will be applied on these types of transactions with immediate effect.
This new tax will be applied to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.
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