Finance Ministry Clarifies VAT Rules for Bailiffs’ Fees
Algeria’s Ministry of Finance has clarified that the inclusion of Value Added Tax (VAT) on judicial bailiffs’ invoices depends entirely on the tax regime under which each bailiff operates. The ministry also placed responsibility on authorizing officers for verifying the applicable tax status before submitting expenditure files, in a move aimed at standardizing budgetary control procedures and ending inconsistent practices among budget controllers.
The clarification comes after persistent differences in how budget controllers processed expenditure commitment files relating to bailiffs’ fees. While some controllers required invoices to show VAT before granting legal approval, others approved the same files without such a requirement, resulting in uneven application of the rules across government administrations.
The guidance was issued in an instruction signed by the General Director of the Budget on July,12, 2026 and addressed to regional budget directors and budget controllers assigned to central government departments. It is based on Circular No. 85 of January,29, 2026, issued by the Directorate General of Taxes, which sets out how VAT rules apply to judicial bailiffs according to their respective tax regimes.
According to the General Directorate of the Budget, the ministry had received numerous reports highlighting inconsistent practices among budget controllers. The discrepancies stemmed primarily from differing interpretations of whether VAT had to be explicitly included on bailiffs’ invoices or fee statements before expenditure commitments could receive the required legal budgetary approval.
The instruction makes clear that the issue should not be left to individual interpretation but must instead be determined solely by the bailiff’s tax status.
Under the simplified tax regime applicable to taxpayers subject to the Personal Income Tax, judicial bailiffs are legally required to charge and collect VAT on the services they provide. Consequently, their invoices or fee statements must clearly indicate both the fee exclusive of VAT (HT) and the VAT amount as separate entries, in accordance with Article 64 of Algeria’s Turnover Tax Code.
By contrast, judicial bailiffs operating under the Single Flat Tax (IFU) regime are prohibited from charging or displaying VAT on invoices or fee statements issued to clients. In these cases, invoices must show only the amount of the fees, without any calculation or mention of VAT, as stipulated by the same provision of the Turnover Tax Code.
The General Directorate of the Budget said the instruction is intended to harmonize budgetary control procedures governing expenditure related to judicial bailiffs’ fees across all public administrations and eliminate the inconsistencies that have characterized the examination of expenditure commitment files.
The ministry further stressed that responsibility for determining whether VAT should be included on an invoice rests exclusively with the authorizing officer (ordonnateur). Before preparing an expenditure commitment file, authorizing officers must verify the tax regime applicable to the judicial bailiff concerned.
Judicial bailiffs, for their part, remain legally responsible, as taxable persons, for issuing invoices that comply with the tax regime to which they are subject.
The ministry expects the clarification to put an end to the rejection or delay of expenditure files caused by conflicting interpretations of the legal provisions. It is also intended to ensure uniform practices across budgetary control services while clearly defining the respective responsibilities of budget controllers, authorizing officers and judicial bailiffs.
Officials say the measure will strengthen the proper application of Algeria’s tax legislation and financial regulations, accelerate the processing of public expenditure, and reduce administrative disputes arising from judicial bailiffs’ invoices.
