The Algerian government has introduced a new regulation in the 2027 finance bill that targets non-resident e-commerce platforms operating in the country. According to the bill, these platforms will be required to register with the tax administration, declare their turnover realized in Algeria, and pay value-added tax (VAT) on digital services provided to Algerian clients. This move aims to ensure that digital services offered by non-resident platforms are subject to VAT, similar to those provided by resident businesses.
The new regulation, outlined in Article 58 of the finance bill, creates a special regime for e-commerce platforms operated by non-resident companies. The regime includes two new articles, 106 bis and 106 ter, which outline the obligations of non-resident e-commerce platforms. Article 106 bis states that non-resident platforms must register with the tax administration and obtain a tax identification number. They must also keep a register of services provided to Algerian clients, including client names, addresses, service types, dates, and amounts.
Non-resident e-commerce platforms will be required to declare their turnover realized in Algeria on a quarterly basis and pay the corresponding VAT. The declaration must be submitted electronically by the 20th day of the month following the end of the quarter. Failure to comply with these obligations will result in a fine of five million Algerian dinars (approximately $38,000 USD) and potential suspension of access to the platform's website.
The government has explained that many e-commerce platforms, including those operated by foreign companies, offer digital services to Algerian users. However, these services currently escape taxation, as the providers are not registered in Algeria. The new regulation aims to transpose a solution proposed by the OECD in 2019, which involves making e-commerce platforms responsible for collecting VAT on behalf of their clients.
The regulation will apply to all non-resident e-commerce platforms that provide digital services to Algerian clients, including streaming, music, data storage, software, and social media services. The platforms will be required to collect VAT on these services, as well as those offered by third-party providers through their platforms.
The Algerian government has emphasized that the new regulation will help to ensure that digital services are subject to the same tax rules as traditional services. The regulation is expected to generate additional revenue for the government and help to level the playing field for resident businesses that are already subject to VAT.
The implementation of the new regulation will be detailed in a forthcoming decree. The government has stated that it will work with e-commerce platforms to ensure a smooth transition and minimize any disruptions to their operations.
Key points
- Non-resident e-commerce platforms will be required to register with the tax administration and pay VAT on digital services provided to Algerian clients.
- The regulation aims to ensure that digital services are subject to the same tax rules as traditional services.
- Failure to comply with the new regulation will result in a fine of five million Algerian dinars and potential suspension of access to the platform's website.
