VAT Measures in Finance Plan 2024: Reporting & Exemptions

Article 39

Modification of Article 76-1: Article 76-1 of the Tax Code is amended. The revised article stipulates that any person conducting transactions subject to value-added tax (VAT) must submit, within twenty (20) days following the calendar month, a statement to the tax collector of the jurisdiction where their headquarters or main establishment is located. This statement should indicate the total amount of business conducted for all taxable or exempted operations.
Payment of VAT: The payment of the applicable VAT, due within the specified timeframe, may not necessarily coincide with the declaration submission date. In case of late payment, penalties, as outlined in Article 140 of the Tax Code, will be applied.
Redeemable Provisions: Certain provisions regarding taxpayers remain unchanged from the previous version of the article.
Purpose of the Measure: The introduction of this measure aims to establish the obligation to report VAT-exempted turnover when filing the monthly declaration with the competent tax collector. This obligation is designed to facilitate the tracking of exempted operations and enable the assessment of fiscal expenditures.

Article 65

Scope of Exemption: Until December 31, 2024, Article 65 exempts certain locally produced food items from the value-added tax (VAT). This includes fresh fruits, fresh vegetables, consumption eggs, chicken meat, turkey, as well as specific products intended for human consumption such as various types of peas, chickpeas, beans, lentils, fava beans, other dried pod vegetables, and different types of rice.
Objective of the Measure: The primary purpose of this measure is to exempt these food items from VAT at both the production and retail stages. The objective is to preserve citizens’ purchasing power and enhance the country’s food security. This initiative is considered a priority for the government due to its direct impact on national sovereignty.
Preserving Citizens’ Purchasing Power and Ensuring Food Security: By providing VAT exemption to locally produced essential food items, the measure aims to support citizens economically and contribute to the nation’s food security goals.

Article 70

VAT Exemption Extension: Article 32 of Ordinance No. 10-01 from August 26, 2010, pertaining to the complementary finance law for 2010, has been modified to extend the exemption from value-added tax (VAT) until December 31, 2025.
Exempted Services: The extension encompasses the exemption from VAT for various services related to internet access and web-related activities, including fixed internet access services, bandwidth rental for fixed internet services, hosting of web servers in data centers in Algeria and .DZ domains, website design and development costs, and maintenance and support expenses for web access and hosting activities in Algeria.
Government ICT Policy: The modification aligns with the government’s Information and Communication Technology (ICT) policy, aiming to promote widespread internet access, expand the telecommunications network, develop data centers, and foster e-commerce and the digital economy.
Historical Context: The initial VAT exemption for internet access was introduced in the 2010 finance law for a ten-year period, extended in 2021 until December 31, 2023, and now proposed for further extension until December 31, 2025.
Economic Development Focus: The rationale behind the extension is to reduce the cost barrier associated with internet access, promoting the development of ICT as a catalyst for the digital economy in Algeria.