The differential algebra on the fuzzy sphere is constructed by applying Connes' scheme. The U(1) gauge theory on the fuzzy sphere based on this differential algebra is defined. The local U(1) gauge transformation on the fuzzy sphere is identified with the left \(U(N+1)\) transformation of the field, where a field is a bimodule over the quantized algebra \(\CA_N\). The interaction with a complex scalar field is also given.