1. VAT exemption for self-employed
General principle
Article 91 of the General Tax Code (CGI) exempts from VAT revenues below MAD 500,000/year for services and MAD 2,000,000/year for goods sales. The self-employed status (CPU) automatically benefits from this exemption as long as revenue respects CPU caps.
Practical consequence: a freelance self-employed (developer, consultant, coach) billing up to MAD 500,000/year does NOT collect VAT on invoices, does not file it, and also cannot recover VAT on professional purchases.
CPU 2026 caps by activity
Service activities (consultants, IT freelancers, liberal professions, trainers): cap MAD 500,000/year of pre-tax revenue.
Commercial and artisanal activities (goods sale, catering, craftsmanship): cap MAD 200,000/year of pre-tax revenue.
Mixed activities: sum of both caps with prorata rule. These caps are revalued every 3-5 years by Finance Act.
2. When to switch to SME regime (VAT taxable)
Exceeding CPU cap
If your revenue exceeds the CPU cap for 2 consecutive years, you automatically lose self-employed status and switch to the standard SME regime with mandatory VAT registration.
You must register in the commercial registry (RC), obtain an SME tax ID (IF), and start collecting VAT (20% standard, 14%, 10% or 7% depending on product) on your invoices from the next fiscal year.
Voluntary option for VAT
A self-employed can voluntarily opt for the VAT regime even below the CPU cap. Advantage: possibility to recover VAT on professional purchases (equipment, software subscriptions, deductible expenses).
Preferable if your professional purchases represent > 30% of your revenue (often the case for e-commerce, creative agencies, event agencies).
3. VAT filing procedure (if taxable)
Frequency by revenue
Monthly filing: mandatory if revenue > MAD 1,000,000/year. To file before the 30th of the following month via tax.gov.ma under SIMPL-VAT.
Quarterly filing: optional if revenue ≤ MAD 1,000,000/year. Periods: Q1 (Jan-Mar), Q2 (Apr-Jun), Q3 (Jul-Sep), Q4 (Oct-Dec). To file before the 30th of the month following the quarter end.
Debit or cash method
Debit method (default): VAT due on invoice date, even if not yet paid by customer. Cash flow risk for freelancers with long payment terms.
Cash method (option): VAT due only upon effective collection. More suited to services. Option to declare to DGI upon first VAT filing.
4. Pitfalls to avoid to preserve self-employed status
Hiring collaborators
CPU status is strictly INDIVIDUAL: no employee or partner allowed. If you need to delegate, either invoice your client as a business introducer, or switch to SARL or SAS.
Common mistake: having your spouse work 'for free' without declaration → possible requalification as undeclared work offense.
Invoicing B2B only to large companies
If > 80% of your revenue comes from a single client (typically a large company), DGI can requalify your relationship as disguised employment contract. You will then lose CPU status and be subject to employer CNSS contributions.
Best practice: diversify your client base (3-5 clients minimum) and keep proof of independence (personal equipment, workplace, occasional missions).
5. FAQ
Q.Must a Moroccan self-employed collect VAT?
Q.What happens if I exceed the CPU cap of MAD 500,000?
Q.Can I voluntarily opt for VAT as a self-employed?
Q.How do I file VAT as an SME in Morocco?
Q.Are there different VAT rates in Morocco in 2026?
Calculate my CPU tax vs SME regime
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