Value-added tax
Moroccan VAT is indirect consumption tax collected by company on behalf of State. Since 1 January 2026 it has only two rates: 20% standard and 10% reduced, the completion of the reform launched by the 2024 Finance Act. The former 7% and 14% rates are gone.
Who is concerned
All companies with annual turnover exceeding 500,000 MAD (commercial) or 250,000 MAD (services). Below, auto-entrepreneur regime with flat rates.
Deadlines
Monthly declaration (if turnover > 1M MAD) before 20th of following month; quarterly otherwise before 20th of month following quarter. Electronic filing mandatory.
How it works
Company invoices VAT to clients (output VAT) and recovers VAT paid to suppliers (input VAT). Pays difference to State monthly or quarterly. If input VAT > output VAT, VAT credit carried forward or refundable.
2026 rates and scales
Two rates since 1 January 2026: 20% standard, applying to most goods and services, and 10% reduced. The 7% and 14% rates were removed at the end of the reform launched by the 2024 Finance Act. Separately, exports and a list of transactions exhaustively set out in the tax code are exempt, with or without the right to deduct.
And in 2027?
These amounts stay in force until the 2027 Finance Act is published in the Official Bulletin. The bill is tabled in Parliament by October 20, 2026 at the latest.
Follow the 2027 Finance ActConcrete example
Communication agency invoices 100,000 MAD excl. tax to client = 120,000 MAD incl. tax (output VAT 20,000 MAD). Pays 30,000 MAD excl. tax to suppliers = 36,000 incl. tax (input VAT 6,000 MAD). VAT to pay = 20,000 − 6,000 = 14,000 MAD.
Exemptions
Exempt operations without deduction right: agricultural, medical (consultations), education, insurance, banking operations on individuals. Exemptions with deduction right: exports, EU deliveries.
Declarative obligations
Issue compliant invoices (numbering, VAT mention, tax ID), keep VAT register, electronic filing SIMPL-TVA, keep invoices 10 years. Since 2024, e-invoicing mandatory for turnover > 5M MAD (progressive extension).
Penalties for non-compliance
15% surcharge late declaration, 20% incorrect declaration. 10% fine on undeclared VAT with 5%/year interest. False invoicing: 100% penalty + criminal prosecution.
Legal optimization tips
- Opt for cash accounting rather than accrual if many unpaid client invoices
- Recover VAT on all documented professional purchases (including utility vehicle fuel)
- Request VAT credit refund rather than carry-forward if export activity dominant
- Anticipate e-invoicing threshold to avoid administrative penalty
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