Morocco VAT 2026: rates, declaration, calculator

1. Morocco VAT 2026: the 4 applicable rates

Rate	Sectors concerned	Examples
20%	Standard rate	Electronics, clothing, various services, new real estate
14%	Energy, transport, tourism	Electricity, passenger transport, hospitality (2026 reform)
10%	Restaurants, finance, basic food	Restaurants, hotels, banks, insurance, oil, salt, rice
7%	Essential products	Water, medicines, newsprint, school transport, horse racing bets

The Moroccan VAT system distinguishes four rates depending on the nature of the good or service. The standard 20% rate covers most operations, while reduced rates target sensitive sectors (energy, food, healthcare, transport).

2. Liability: who must collect VAT?

Sales activities: liability threshold set at MAD 500,000 annual turnover
Services: threshold lowered to MAD 200,000 annual turnover
Below thresholds: voluntary option possible to recover deductible VAT
Out-of-scope activities: unprocessed agriculture, medical professions, education
Tax identification number (IF) mandatory upon crossing the threshold

VAT liability depends on annual turnover and activity type. Above the legal thresholds, the business is mandatorily liable and must charge VAT to its customers.

3. Auto-entrepreneur: exemption under CPU ceiling

CPU ceiling commerce/crafts: MAD 500,000 per year
CPU services ceiling: MAD 200,000 per year
No VAT to charge or declare under these ceilings
Mandatory invoice mention: 'VAT not applicable, article 91 of the General Tax Code'
Exceeding the ceiling: automatic switch to standard regime

The auto-entrepreneur status (Single Professional Contribution — CPU) benefits from full VAT exemption as long as turnover ceilings are respected. This franchise simplifies billing but prevents recovery of VAT on business purchases.

Beware of exceeding the threshold

Exceeding the CPU ceiling for two consecutive years triggers permanent loss of status and immediate liability for VAT, progressive income tax and the minimum contribution.

4. VAT calculation: from HT to TTC

Operation	Formula	Example (20% rate)
HT to TTC	TTC = HT × (1 + rate)	1,000 × 1.20 = 1,200 MAD
TTC to HT	HT = TTC / (1 + rate)	1,200 / 1.20 = 1,000 MAD
VAT amount from HT	VAT = HT × rate	1,000 × 0.20 = 200 MAD
VAT amount from TTC	VAT = TTC − (TTC / (1 + rate))	1,200 − 1,000 = 200 MAD

VAT calculation relies on two basic formulas. From the HT (pre-tax) price, the rate is applied to obtain TTC (tax-inclusive). Conversely, from TTC, you divide to find HT and isolate the VAT amount.

5. Recovering deductible VAT on purchases

Purchases of goods and raw materials: VAT deductible at 100%
Fixed assets (machinery, furniture, commercial vehicles): full deduction
Professional diesel fuel: VAT deductible at 50%
Catering, accommodation, gifts: non-deductible
Passenger cars: VAT non-recoverable (except taxis, driving schools, rental)
Mandatory retention of original invoices for 10 years

Liable businesses can deduct VAT paid on their professional purchases from VAT collected from their customers. This mechanism avoids double taxation and is the heart of the VAT system.

6. VAT declaration: monthly or quarterly?

Regime	HT turnover threshold	Deadline
Monthly	Above MAD 1,000,000	Before the 20th of the following month
Quarterly	At or below MAD 1,000,000	Before the 20th of the month after the quarter
New activity	Any size, first year	Quarterly by default

Declaration frequency depends on company turnover. Declaration is mandatorily made online via the DGI's SIMPL-VAT portal, with simultaneous payment of the balance due.

7. Late penalties: 2026 schedule

Flat surcharge of 5% on the VAT amount due
Interest of 0.5% per month or fraction of month of delay
Fine for failure to file declaration: MAD 500 minimum
Penalty for concealment or fraud: 100% of evaded amount
Possibility of gracious remission request in force majeure cases

Failure to declare or pay within deadlines triggers automatic cumulative penalties. Amounts can quickly become significant for high-turnover companies.

The clock ticks from day 21

A monthly declaration filed on the 25th (instead of the 20th) immediately triggers the 5% surcharge plus 0.5% interest — a 5.5% penalty for 5 days of delay. Better to plan ahead.

8. VAT credit and refund

Credit indefinitely carryforward on subsequent VAT declarations
Statutory refund for exporters (deductible VAT on inputs)
Refund possible for companies having invested in fixed assets
Application to be filed within 4 years following credit formation
Legal refund period: 3 months after complete file submission
Supporting documents: purchase invoices, VAT declarations, bank certificates

When deductible VAT on purchases exceeds VAT collected on sales (typical case for exporters or companies in investment phase), a VAT credit forms. This credit can be carried forward to subsequent declarations or refunded under conditions.

9. Specific exemptions without deduction right

Unprocessed agricultural products (cereals, vegetables, fruits)
Bread, milk and basic dairy products
Books, brochures and periodical publications
Wine sales (historical CGI exemption)
Medical, paramedical and hospital services
Public and recognized private education services
Export operations (with deduction right)

Some products and services benefit from full VAT exemption. These exemptions are provided by the General Tax Code (CGI) and mainly concern essential goods, raw agricultural products and certain cultural activities.

10. FAQ

Q.What are the 4 VAT rates in Morocco in 2026?

Morocco applies four distinct rates: 20% (standard rate), 14% (energy, passenger transport, tourism), 10% (restaurants, hospitality, banks, insurance) and 7% (water, medicines, school transport, newsprint).

Q.From what turnover does one become VAT liable?

The liability threshold is MAD 500,000 annual turnover for sales activities, and MAD 200,000 for services. Below this, voluntary option remains possible.

Q.How do you calculate VAT from a pre-tax price?

Apply the formula TTC = HT × (1 + rate). For a product HT of MAD 1,000 at 20%, the TTC is MAD 1,200, including MAD 200 of VAT.

Q.Must an auto-entrepreneur charge VAT?

No. The CPU status fully exempts from VAT as long as the annual ceiling is respected (MAD 500,000 commerce, MAD 200,000 services). The mention 'VAT not applicable, article 91 of CGI' must appear on invoices.

Q.What is the VAT declaration frequency?

Monthly for companies whose HT turnover exceeds MAD 1,000,000, quarterly for others. Declaration is made on the SIMPL-VAT portal before the 20th of the following month.

Q.What are the penalties for late filing?

A flat surcharge of 5% of the amount due, plus 0.5% interest per month or fraction of month of delay. A minimum fine of MAD 500 also applies for failure to file.

Q.Can VAT on passenger cars be recovered?

No, VAT on passenger cars is not deductible, except in special cases: taxis, driving schools, car rental companies and commercial vehicles.

Q.How to get a VAT credit refund?

The refund request is filed with the DGI within 4 years following credit formation, with invoices and declarations to support it. Legal processing time is 3 months after complete file.

Q.Is fuel 100% deductible?

No. VAT on professional diesel is deductible only at 50%. Gasoline is generally not deductible, except for rental companies and driving schools.

Q.Which products are fully exempt from VAT in Morocco?

Bread, milk, raw agricultural products, books, essential generic medicines, medical services and education benefit from full exemption provided by the General Tax Code.

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