Algeria VAT Calculator – Simplify Your Tax Calculations

ALGERIA VAT CALCULATOR

Algeria imposes a VAT on goods and services, with a Standard rate of 19% & Reduced rates of 9%. Monthly VAT returns and payments are due by the 20th day of the following month.

These rates are applied based on the nature of the goods or services, with the reduced rate typically targeting essential items such as basic food products, healthcare services, and public transportation.

These transactions are all subject to VAT and must be reported for tax purposes.

What Is VAT in Algeria? An Overview of the Algeria Tax System

Value Added Tax (VAT) in Algeria is a crucial part of the nation’s tax system, introduced to streamline the taxation process and increase government revenue. As a consumption-based tax, VAT is applied to goods and services at each stage of production and distribution, ensuring that businesses and consumers contribute to the country’s economy.

Since its implementation in the early 1990s, VAT has played a key role in shaping Algeria’s tax landscape. It not only simplifies the tax collection process but also aligns with international tax standards, helping the country integrate into the global economy. With VAT affecting various sectors, businesses must understand the system to comply with regulations and optimize their tax strategy.

Visit also Albania VAT Calculator

Algeria Currency Notes

Customs Duties in Algeria

Algerian imports are subject to different customs duties, depending on the nature of the goods. The duty rates are categorized as:

  • Duty-Free
  • 5%
  • 15%
  • 30%
  • 60%

Additionally, Algeria has implemented a provisional safeguard right (DAPS) on specific imported goods to discourage the importation of certain products. These DAPS rates range from 30% to 200%. A list of 2,608 goods subject to DAPS was released in 2022.

Customs Exemptions and Preferential Regimes

Algeria offers specific customs exemptions and temporary admission regimes for the oil and gas sector and investments under the National Agency of Investment (ANDI). Goods originating from countries with free trade agreements (e.g., the European Union and Arab Free Exchange Zone (GZALE)) benefit from preferential customs rates or exemptions.

Excise Taxes in Algeria

Algeria imposes excise taxes on specific goods, including:

  • Tobacco products: Subject to an excise tax ranging from 10% to 15%.
  • Electronic cigarettes: Taxed at 40%.
  • Matches and lighters: Taxed at 20%.

These taxes are meant to regulate consumption while generating additional government revenue.

Property and Wealth Taxes

Algeria levies an annual property tax on real estate, with rates varying depending on the property’s location. Additionally, the country has a wealth tax applied to holdings as follows:

  • Less than 100,000,000 DZD: 0%
  • 100,000,001 to 150,000,000 DZD: 0.15%
  • 150,000,001 to 250,000,000 DZD: 0.25%
  • 250,000,001 to 350,000,000 DZD: 0.35%
  • 350,000,001 to 450,000,000 DZD: 0.50%
  • More than 450,000,000 DZD: 1%

Transfer and Stamp Taxes

  • Transfer Tax: A 5% tax applies on the transfer of land, buildings, and ongoing business, along with 1% tax for publication formalities.
  • Stamp Duty: Varying stamp duties apply on various transactions such as document executions, deeds, and company-related matters.

Payroll and Social Security Contributions

  • Personal Income Tax (PIT): Withheld on salary and assimilated income, applying a progressive scale with a maximum rate of 35%.
  • Training and Apprenticeship Tax: Both are levied at 1% of the payroll cost.
  • Social Security Contributions: A total of 35% on gross salary, with 26% borne by the employer and 9% by the employee.

Bank Domiciliation Tax and Pollution Tax

  • Bank Domiciliation Tax: A 4% tax is applied on the importation of services, reduced to 0.5% for imported goods, with a minimum tax of DZD 20,000.
  • Pollution Tax: Levied on assets that may cause environmental damage.

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