Algeria has amended the value-added tax (VAT) code to clarify when (1) the VAT credit refund request for cessation of activity must be submitted and (2) the tax administration must notify a taxpayer that the refund request was rejected (see Circular No.21/MF/DGI/LF.2025, dated 27 March 2025, and Circular No.24/MF/DGI/LF.2025, dated 27 March 2025).

Submission of VAT refund requests in case of cessation of activity

In accordance with the new provisions, requests for refunds of VAT credits related to cases of cessation of activity must be submitted when filing the final balance sheet.

Notification of rendered decisions

The tax administration is required to notify the taxpayer of decisions either by (1) a registered letter with acknowledgment of receipt by personal delivery, or (2) registered mail. If the tax administration rejects a VAT refund request, it must formally justify that decision, within a reasonable time, by clearly stating the legal and factual grounds upon which the decision is based, so the taxpayer may appeal before the litigation department.

The appeal should be submitted by the last day of the fourth month following the month in which the notification was received. In the absence of such written justification, the appeal period remains open.