Algeria 2027: New VAT Rules for E-commerce Platforms

Algeria’s 2027 draft Finance Law would change the VAT treatment and reporting obligations of e-commerce platforms. Under the proposed rules, foreign platform operators would have to register with the Algerian tax authorities, report revenue generated in Algeria, and account for VAT on digital services supplied to customers in the country.

Background

According to the government’s explanatory memorandum, the measure addresses the growing number of e-commerce platforms, run by both Algerian and foreign companies, that supply digital services to customers in Algeria. These include streaming and music services, cloud storage, downloadable or subscription-based software, office applications, and professional or social media subscriptions.

The government notes that these services are already subject to Algerian VAT when the customer is resident in Algeria. In practice, however, VAT is hard to collect when a non-resident platform supplies services directly to an individual in Algeria, so these transactions often escape taxation. To close this gap, the government proposes making platforms responsible for collecting and remitting VAT. The approach draws on international models, including the EU’s DAC7 rules and the OECD’s Model Reporting Rules for Digital Platforms.

Proposed VAT Rules for E-commerce Platforms

The 2027 draft Finance Law proposes establishing a “Special Regime for Electronic Commerce Platform Operators”, which includes specific VAT registration, record-keeping, reporting, and payment obligations for non-resident e-commerce platform operators.

Under proposed rules, the non-resident platform operators would pay VAT on behalf of their Algerian customers. To comply, they must register with the Algerian tax authorities through a dedicated online platform and obtain a Tax Identification Number.

They would also be required to maintain a register of services supplied to customers in Algeria. This register must include each customer's name and email address, the nature of the service, the invoice date, the total amount invoiced, and the VAT collected. The information must be retained for ten years, allowing the tax authorities to verify the transactions and VAT declared.

The proposed reporting frequency is quarterly. Platform operators must electronically declare the turnover generated in Algeria from taxable services supplied through their platforms. The VAT return must be submitted no later than the 20th day of the month following the end of each quarter. The corresponding VAT payment must be made together with the return.

Next Steps

Since the implementing details of the proposed VAT regime will be determined through subsequent regulations, businesses operating e-commerce platforms in Algeria should closely monitor upcoming regulatory announcements. Staying informed will help companies prepare for specific registration, record-keeping, and quarterly reporting requirements once they are officially finalized by the Algerian tax authorities.