Standard 19% VAT, reduced rates available. Calculate VAT-inclusive, VAT-exclusive, reverse VAT extraction, and multi-item invoice totals. Accurate 2026 DGI rates.
Calculate how much VAT the buyer withholds and remits to the tax authority on this transaction.
Algeria applies a value-added tax known as Taxe sur la Valeur Ajoutée (TVA), which was introduced in April 1992 to replace the older turnover tax system. The standard TVA rate is 19%, applied to most goods and services sold within the country. A reduced rate of 9% applies to certain essential goods and services, including basic food products such as bread, milk, flour, and semolina, as well as some cultural and tourism-related activities. Exports of goods and services are zero-rated, allowing exporters to reclaim input TVA. Exempt supplies include medical services, financial and insurance transactions, and educational services provided by public institutions. Algeria's tax administration is overseen by the Direction Générale des Impôts (DGI). Businesses with annual turnover exceeding DZD 15 million for goods or services must register for TVA. Registered businesses are required to file monthly TVA returns by the 20th of the following month, with quarterly filing available for smaller enterprises. Algeria has been modernizing its tax system, with electronic filing (Télédéclaration) becoming increasingly mandatory. Input TVA can be deducted against output TVA, with refunds available for businesses in a net credit position, though the refund process can be lengthy. Non-resident businesses supplying digital services to Algeria may also face TVA obligations under recent regulatory updates.
Businesses with annual turnover exceeding DZD 15 million must register for TVA with the Direction Générale des Impôts. Smaller businesses may voluntarily register if they wish to reclaim input TVA on their purchases.
The reduced 9% rate applies to essential food items (bread, milk, flour, semolina, vegetable oils), pharmaceutical products, certain agricultural inputs, hotel and tourism services, and internet access services.
Monthly TVA returns must be submitted by the 20th of the following month for most businesses. Smaller enterprises with turnover below certain thresholds may file quarterly. Electronic filing through the Télédéclaration system is increasingly required.
No. Exports of goods and services from Algeria are zero-rated, meaning they are taxable at 0%. This allows exporting businesses to reclaim all input TVA paid on purchases used in producing exported goods.
Yes, businesses in a net TVA credit position can apply for refunds through the DGI. However, the refund process can be lengthy and may require tax audits. Exporters and businesses making significant capital investments are typically prioritized for refunds.