Algeria: Draft 2027 Finance Bill proposes VAT collection by nonresident platforms and platform reporting requirements

The draft 2027 Finance Bill (French) (Projet de Loi de Finances pour 2027), as submitted to the National People’s Assembly (Assemblée Populaire Nationale), was published on October 4, 2026. Among other measures, the draft bill would (1) expressly bring sales of goods and services made through local or foreign e-commerce platforms, including platform commissions, within the scope of VAT, (2) require nonresident e-commerce platform operators offering remote, dematerialized services to register for, collect, and remit VAT, and (3) introduce annual reporting obligations for resident and nonresident platforms that connect sellers and buyers (similar in concept to the EU’s DAC7 and the OECD’s Model Reporting Rules for Digital Platforms (MRDP)).

Overview of proposed VAT rules

Scope

The draft bill expressly brings sales of goods and services made through local or foreign e-commerce platforms into the scope of VAT, including commissions earned by platform operators on these transactions. Separately, for all sellers (not only platforms), the draft bill defines sales of goods and services and taxpayers, and lists intangible services, which include:

• Assignments and licenses of copyrights, patents, trademarks, and similar rights
• Advertising
• Consulting, engineering, and research and development (R&D) services
• Services of chartered accountants, lawyers, duly registered legal and tax advisers, and other liberal professions
• Data processing and provision of information
• Staff provision and services of intermediaries acting in the name and on behalf of others in the provision of the services above
• Radio and television broadcasting
• Services provided by electronic means, including by download

The proposed collection mechanism would be limited to services. Although sales of goods made through platforms fall within the scope of VAT, the draft bill does not provide a platform collection mechanism for goods.

B2B v. B2C

The explanatory memorandum confirms that the platform regime covers sales to both VAT-registered and non-registered customers. VAT-registered customers could deduct the VAT based on the invoice received, subject to the general deduction conditions.

The draft bill maintains the reverse-charge (“self-assessment”) mechanism for sales by sellers established outside Algeria. However, the self-assessment mechanism would not apply to platform operators covered by the new platform rules.

Sourcing and customer location

Intangible services are taxable in Algeria when the customer is established there, whether or not the customer is VAT-registered. This is the case when the customer:

• Is a business registered for tax in Algeria, unless it has a permanent establishment (PE) abroad (within the meaning of the applicable tax treaty) to which the services are provided;
• Has a PE in Algeria to which the services are provided; or
• Is resident or has its fiscal domicile in Algeria.

The draft bill would further clarify that physically localizable services (such as immovable property work, on-site cultural, educational, and entertainment services, domestic transport, rentals, restaurants, and accommodation) are taxable in Algeria where performed; installed or assembled goods are taxable where the installation takes place; Algerian-established taxpayers unable to prove a transaction occurred abroad are deemed to have made it in Algeria; and telecom services are taxable where the recipient operator is established (roaming) or, for services billed by an Algerian-registered telecom company, regardless of where they are used.

For services sold by local or foreign e-commerce platforms, the customer is presumed to have its fiscal domicile in Algeria when any one of the following indicators exists:

• An Algerian address shown on the invoice;
• Payment with a bank card issued by a financial institution registered in Algeria;
• Use of an Algerian Internet Protocol (IP) address; or
• Use of the Algerian international telephone country code.

The draft bill does not set a hierarchy between these indicators, a rule for conflicting evidence, or an express possibility for the operator to rebut the presumption.

Marketplace and platform rules

According to the explanatory memorandum, platforms would be responsible for collecting VAT both on their own services and on services of third-party providers sold through the platform (“marketplaces”). The operative text refers only to VAT “on behalf of their customers” (pour le compte de ses clients).

The regime applies to nonresident persons without a PE or permanent professional installation in Algeria that operate an e-commerce platform offering remote, dematerialized services taxable in Algeria. The examples in the explanatory memorandum (streaming, music, data storage, downloadable or subscription software, office solutions, and professional or social network subscriptions) suggest that nonresidents selling digital services directly through their own website or application would also be covered, not only marketplaces. This should be confirmed in the implementing regulations.

Registration

Nonresident platform operators must register with the tax authority through a dedicated electronic platform and obtain a tax identification number (numéro d’identification fiscale, or NIF). The draft does not include a registration threshold.

VAT invoicing and rates

The draft does not include specific invoicing or e-invoicing requirements for nonresident platform operators. Operators must keep a register of services sold to customers in Algeria that includes the invoice date, suggesting that invoices would be issued.

The draft bill does not set a specific VAT rate for platform sales, so the general VAT rates (19% standard rate; 9% reduced rate for listed items) would apply. It also does not specify the currency in which VAT must be declared and paid.

Compliance

Platform operators must keep a register for 10 years that contains the following information for each sale to a customer in Algeria:

• Customer’s name and email address
• Nature of the service
• Invoice date
• Total amount billed
• Amount of VAT collected

Operators must file an electronic VAT return on a model provided by the tax authority, covering gross receipts in Algeria during each quarter on taxable services sold to their customers. The return is due by the 20th day of the month following the end of the quarter and must be accompanied by payment of the VAT due. Procedures would be detailed by regulation.

Penalties

When a platform operator does not meet its filing and payment obligations, the tax authority would issue a formal notice requiring compliance within 30 days. If the operator does not regularize its situation within this period, it would be subject to a fine of DZD 5 million. The Director General of Taxes may also request the suspension of access to the platform’s website until the operator regularizes its situation. The draft bill does not set a specific penalty for failure to register or to keep the register.

Overview of the proposed platform reporting rules

The draft bill would introduce a new section in its direct tax code, titled “Special obligations of collaborative economy platform operators” (Obligations particulières des opérateurs de plateforme de l’économie collaborative), which would require platforms to report information on their sellers to the tax authority.

Platforms in scope

The rules apply to any platform operator, whether resident or nonresident in Algeria, that makes available to individuals or legal entities a system enabling them to connect electronically to carry out sales of goods or services, directly or indirectly, in Algeria.

Transactions in scope

The operative text covers sales of goods and services made in Algeria, with no distinction by transaction type. The explanatory memorandum describes the target as platforms that allow individuals or businesses to rent or sell new or used movable and immovable property (for example, apartments and motor vehicles) or to provide services (for example, personal services).

Sellers in scope

The rules apply to sellers and service providers that are individuals or legal entities. According to the explanatory memorandum, the annual report must cover operations when the seller or provider is resident in Algeria or when the asset is located in Algeria, such as real estate or a vehicle registered in Algeria. This limitation does not appear in the operative text, which refers more broadly to transactions carried out in Algeria. The draft does not include thresholds or exemptions, for example for VAT-registered businesses or B2B sales.

Due diligence requirements

The draft does not prescribe due diligence or verification procedures similar to those under the EU’s DAC7 or the OECD’s MRDP.

Registration

Platform operators must identify themselves to the tax authority on a dedicated electronic platform. The draft bill does not include a registration threshold.

Reporting obligation

Platform operators must submit an electronic report on transactions made by sellers and providers through the platform by January 31 of each year, covering the prior year. The report must include, among other information:

• Identification of the sellers or providers
• Their payment method
• Number of transactions made during the year
• Corresponding consideration

Amounts in foreign currency must be converted into Algerian dinars using the exchange rate on the transaction date. The draft bill does not provide for withholding tax on payments to sellers.

Platforms must inform sellers and providers on their website that transactions made through the platform in Algeria are taxable and that the data is transmitted to the Algerian tax authority. According to the explanatory memorandum, data sharing must comply with Algeria’s personal data protection law.

Penalties

When a platform operator does not file its report, the tax authority would issue a formal notice requiring compliance within 30 days. If the operator does not regularize its situation within this period, it would be subject to a fine of DZD 1 million. The Director General of Taxes may also request the suspension of access to the platform’s website until the operator regularizes its situation.

Related measure: use of online information in tax audits

The draft bill would also allow the tax authority to collect, process, and use information publicly accessible on websites and social networks to detect inconsistencies with taxpayers’ declarations and initiate tax audits. Such data could be retained for a maximum of six years. Combined with platform reporting, this signals closer scrutiny of income earned through the digital economy.

Other VAT and reporting measures of interest

The draft bill includes several other measures that could affect businesses operating in Algeria:

• Omitted input VAT: Omitted deductible VAT could be recovered up to the December (or last quarterly) return of the following year, with a 25% penalty if the regularized VAT is not shown separately.
• Seller statement: The statement of sellers supporting VAT deductions could be filed electronically.
• Monthly client statements: Wholesalers and mobile telephony distributors would have to e-file a monthly client statement with their VAT return, subject to a DZD 100,000 fine for non-filing.
• Cash register software: The certificate requirement effective January 1, 2027, would carry a DZD 500,000 fine per software or system.
• Foreign companies under Article 153 of the direct tax code: Such companies would have to e-file an annual statement of all contracts performed in Algeria, and a PE under a single contract would trigger filing for all contracts.

Implementation timeline

The draft bill does not include a specific effective date for the VAT or platform reporting measures. The draft bill has not yet been adopted and may change during the parliamentary process. Practical application of the platform VAT regime would also depend on implementing regulations and on the dedicated electronic registration platforms being available.

KPMG observation

Nonresident digital service providers and marketplaces with Algerian customers should map their customer base against the four location indicators, assess whether their systems can charge Algerian VAT and file quarterly returns, and monitor the parliamentary debate and implementing regulations. Algerian businesses that currently self-assess VAT on services purchased from nonresident platforms should prepare for VAT to be charged on invoices instead. Platforms connecting sellers in Algeria should assess whether they hold the data required for the January 31 annual report and update their website notices. More broadly, businesses should review their obligations under the updated VAT sourcing rules.

 

For more information, contact a KPMG tax professional:

Philippe Stephanny | philippestephanny@kpmg.com

Ramzi Ouali | rouali@kpmg.dz