There are three tax rates, one set at 17 % (normal rate), another at 7 % (reduced rate) and the last at 0% for certain products, such as Pharmaceuticals. The reduced rate applies to certain goods, products and materials, as well as certain operations specifically provided for by Article 23 of the turnover tax code. For instance, the Finance Act of 2006, wishing to steer consumption towards available, less-polluting energy sources, namely natural and propane gas, reduced the VAT rate on equipment earmarked for fuel. For transactions carried out domestically, these rates are applied to the price of merchandise, works or services, including all costs, duties and taxes, with the exception of the VAT itself. - See more at: http://ambalg-sofia.org/algeria/doing-business/key-tax-laws-for-investors/#sthash.jLsyh5pl.dpuf