The question of whether taxpayers subject to the Lump Sum Tax (IFU) regime can issue invoices with Value Added Tax (TVA) comes up frequently in tax practice in Algeria. An analysis of the legal framework clearly shows that taxpayers under this regime are not authorized to charge TVA.

1. Legal Framework of the IFU Regime

The Lump Sum Tax regime is governed by the Code of Direct Taxes and Assimilated Taxes (CIDTA).

Article 282 bis of the CIDTA states that:

the lump sum tax consolidates several levies, including IRG, TAP, and TVA.

Thus, TVA is included in the IFU, meaning that the taxpayer does not collect it separately and does not declare it.

This regime applies primarily to natural persons carrying out commercial, craft, or service activities whose annual turnover does not exceed the threshold set by the Finance Law.

2. Consequences Regarding TVA

Since TVA is included in the IFU:

• taxpayers under this regime are not liable for TVA,
• they do not file TVA returns,
• they cannot recover TVA on their purchases,
• and above all they cannot charge TVA to their clients.

Transactions carried out by these taxpayers are therefore invoiced without TVA.

3. References in the Turnover Tax Code

The Turnover Tax Code (CTCA) also specifies that certain transactions are excluded from TVA, particularly those carried out by taxpayers under the IFU regime.

This confirms that these taxpayers are not considered liable TVA subjects.

4. Mandatory Mentions on Invoices

In practice, invoices issued by a taxpayer subject to the IFU must be drawn up without TVA, with a notice such as:

"Taxpayer subject to the Lump Sum Tax (IFU) regime – Not subject to TVA."

Conclusion

In light of the provisions of the Code of Direct Taxes and Assimilated Taxes (article 282 bis) and the Turnover Tax Code, taxpayers under the Lump Sum Tax regime are not authorized to charge TVA.

Any TVA billing by a taxpayer subject to the IFU would therefore be irregular and could result in a tax reassessment.